Economics Chapter 1

Economics has been defined in this textbook as the

A. science of efficiency.

B. science of scarcity.

C. study of markets.

D. study of human activity.

B. science of scarcity.

What do they mean when economists referring to scarcity?

A. condition in which society is not employing all its resources in an efficient way.

B. condition in which people's wants outstrip the limited resources available to satisfy those wants.

C. economic condition that exists in only very poor countries of the world.

D. condition in which society produces too many frivolous goods and not enough socially desirable goods.

B. condition in which people's wants outstrip the limited resources available to satisfy those wants.

Based on the textbook, specify the item(s) that is not categorized as four resources.

A. government

B. labor

C. federal reserve

D. a and c

E. entrepreneurship

F. land

D. a and c

Before accepting a job as a game developer, Jack is offered a well-paid scholarship for a fouryear college degree. Assuming that a game developing and attending college are Marvin's preferred alternatives and that he must choose between the two, his opportunity cost of accepting the job after receiving the offer ________________, making him ____________ likely to accept the job than before he received the offer.

A. increases; less

B. decreases; more

C. stays the same; equally likely

D. increases; more

E. decreases; less

A. increases; less

If variable Y__________, as variable X __________, then Y and X are independent.

A. rises; rises.

B. falls; falls.

C. rises; falls.

D. changes; does not change.

D. changes; does not change.

Slop is defined as:

A. percentage change in one variable as another variable changes

B. percentage change in one variable divided by percentage change in another variable

C. change in one variable divided by percentage change in another variable

D. how much one variable changes as another variable changes

E. all of the above

D. how much one variable changes as another variable changes

Based on the textbook, scarcity is

A. the condition in which both wants and resources are limited.

B. the condition in which wants are finite and resources infinite.

C. the condition in which wants are infinite and resources finite.

D. the condition in which both wants and resources are infinite.

D. the condition in which both wants and resources are infinite.

If something gives us satisfaction (utility) it is called a

A. need.

B. good.

C. want.

D. bad.

E. a and c

B. good.

A bad and a good provide __________ and __________ respectively.

A. utility; satisfaction

B. dissatisfaction; utility

C. disutility; satisfaction

D. b and c

E. satisfaction; disutility

D. b and c

What is the relationship between scarcity and competition?

A. Competition is an effect of scarcity.

B. Scarcity is an effect of competition.

C. Both scarcity and competition are effects of a rationing device.

D. Both scarcity and competition are effects of opportunity cost.

E. Scarcity produces disutility and competition produces utility.

A. Competition is an effect of scarcity.

We incur a(n) __________, every time we make a __________,

A. efficient effect; decision

B. mistake; decision

C. price; competitive move

D. opportunity cost; choice

E. none of the above

D. opportunity cost; choice

It is __________ likely a person will do something if its opportunity cost is __________.

A. less; lower

B. more; lower

C. more; higher

D. less; higher

E. b and d