1.Which of the following is NOT an example of scarcity?

a. Due to a lack of rainin San Diego, California, the amount of water for families is limited.

b. Crude oil was in short supply in the 1970s, leading to a quantity demandedbeing greater than the quantity supplied.

c. After textbook buyback season, Amazon received an influx of used textbooks into their inventory.

d. Fresh water bass are on the decline due to disease.

2.Which of the following are among thereasons offered by Adam Smith for why specialization results in higher levels of output?

(Select all that apply. Hint: There are 2 correct answers.)

a. Specialization in a particular small job allows workers to focus on the parts of the production process where they have an advantage.

b. Specialization allows businesses to take advantage of economies of scale.

c. Specialization allows workers to experiment with different tasks to see which responsibilities make them happiest at work.

d. Workers who specialize in certain tasks forgo an opportunity to learn how to do new tasks efficiently.

3.The export/GDP ratio has generally ___________ worldwide in recent decades.

a. declined

b. stayed the same

c. varied

d. increased

4.Which of the following isnottrue of "models" in the study of economics?

a. Models perfectly mirror real-world situations.

b. Models simplify real world interactions for the purposes of illustration.

c. Models are used to test theories.

d. Economic models are often in the form of graphs.

5.In command economies, decision-making is ______________.

a. determined by the market

b. centralized

c. decentralized

d. decided by familial or traditional skillsets

6.In the two-entity circular flow, _______________ are on the receiving end of payments for goods and services.

a. households

b. firms

c. families

d. governments

7.A student of macroeconomics would study which of the following concepts?

a. monetary policy

b. growth in the standard of living

c. the question of what causes the economy to speed up or slow down

d. all of the above

8.In which type of an economy do occupations stay in the family and people consume mostly what they produce?

a. Traditional economy

b. Command economy

c. Market economy

d. Underground economy