1)Scarcity exists when

Select one:

a. the availability of a resource is greater than the desired amount.

b. the availability of a resource is less than the desired amount.

c. all goods are free,

d. the availability of a resource is less than the needed amount.

2)Scarcity confronts ________.

Select one:

a. the rich and the poor

b. families with incomes less than $100,000 a year or people live in developing countries

c. the rich but not the poor A) neither the poor nor the rich B) the rich but not the poor C) the poor but not the rich D) the rich and the poor E) families with incomes less than $25,000 a year

d. everyone

3)Opportunity cost can be expressed in terms of

Select one:

a. time, goods or services, or monetary value.

b. goods or services only.

c. monetary value only.

d. time only.

4)During the next hour you can choose one of the following three activities: playing basketball, watching television, or reading a book. The opportunity cost of reading a book

Select one:

a. is the value of playing basketball if you prefer that to watching television.

b. is the value of playing basketballandthe value of watching television.

c. is the value of watching television if you prefer playing basketball to watching television.

d. depends on how much the book cost when it was purchased.

5)Economic agents can be categorized into broad groups that include all of the following EXCEPT

Select one:

a. governments.

b. households.

c. Markets.

d. business firms.

6)Which of the following would be considered a microeconomic topic?

Select one:

a. Two companies competing in the same market

b. The impacts of unemployment on national income

c. The severity of a recession

d. The cause of unemployment in the economy

7)When the government chooses to use resources to build a hospital, those resources are no longer available to build a school. This illustrates the concept of ___________.

Select one:

a. a market

b. macroeconomics

c. opportunity cost

d. natural resources