1.

(01.01 LC) What is the primary way the essential economic questions are answered in a free-market economic system? (5 points)

	Central planning based on academic research
	Regulations
	Equal distribution of public goods and services
	Taxes
	Voluntary exchange of private property

2.

(01.01 LC) What is the fundamental reason individuals and societies must make choices? (5 points)

	Scarcity
	Incentives
	Shortages
	Consumer goods
	Capital goods

3.

(01.01 LC) What is the study of macroeconomics principally concerned with? (5 points)

	Examining how business firms are structured
	Analyzing a personal or household financial budget
	Distinguishing between positive and normative science
	Measuring and maintaining the health of whole economies
	Identifying the source of value in the international free market

4.

(01.01 LC) Which term refers to a resource used to produce a good or service for sale? (5 points)

	A normative good
	Advertising
	A consumer good
	A factor of production
	An economic downturn

5.

(01.01 LC) Resources are __________ and wants and needs are ________. (5 points)

	unlimited; unlimited
	unlimited; limited
	limited; unlimited
	limited; limited
	not scarce; scarce