All economic questions occur because we

Question 7 options:

a)	have an abundance of resources.

b)	want more than we have.

c)	have limited wants that need to be satisfied.

d)	want more than we need.

Question 8 (1 point)

Scarcity exists because

Question 8 options:

a)	of the inefficient choices we make.

b)	our wants exceed the resources available to satisfy them.

c)	there are poor people.

d)	people are greedy and wasteful.

Question 9 (1 point)

The opportunity cost is

Question 9 options:

a)	the benefit minus the cost.

b)	highest-valued forgone alternative.

c)	all the possible alternatives given up.

d)	monetary costs of an activity.

Question 10 (1 point)

Resources are

Question 10 options:

a)

scarce.

b)	land, labor, capital, and profits.

c)	All of these are correct.

d)	households and firms.

Question 11 (1 point)

Physical or mental effort by a person in exchange for a wage is

Question 11 options:

a)

labor.

b)	physical capital.

c)	entrepreneurship.

d)	venture capital.

Question 12 (1 point)

In economics, "capital" means

Question 12 options:

a)	resources that are available in nature such as mineral deposits.

b)	money that is used to consume goods and services, to distinguish it from money that is saved.

c)	man-made resources used to produce other goods and services.

d)	the value of the best alternative to an action.

Question 13 (1 point)

Which pair does match?

Question 13 options:

a)	land; interest

b)	entrepreneurship; profit

c)	labor; rent

Question 14 (1 point)

An economic model is

Question 14 options:

a)	a description of the important characteristics of a situation.

b)	a statement that describes how the world should be.

c)	summarizes all the opinions about a particular issue.

d)	a collection of facts that describe the real world.

Question 15 (1 point)

_______ hire resources, which they use to produced goods and services. _______ sell or rent out resources to earn income, which they use to buy goods and services.

Question 15 options:

a)	Firms; Firms

b)	Households; Households

c)	Households; Firms

d)	Firms; Households

Question 16 (1 point)

In a centrally planned economy, all economic decisions are made by

Question 16 options:

a)

voters.

b)

firms.

c)	individuals.

d)	government.

Question 17 (1 point)

According to the Invisible Hand Principle, competitive market prices will

Question 17 options:

a)	cause individuals acting out of self-interest to use resources efficiently.

b)	direct entrepreneurs toward production of goods that are inferior in quality.

c)	discourage profit-seeking business firms from producing efficiently.

d)	always decrease.

Question 18 (1 point)

Making a rational choice means a person has

Question 18 options:

a)	made the choice after considering the costs and benefits.

b)	made a "good" decision.

c)	ignored their personal interests and made the choice that is best for society.

d)	forgot to consider the unintended consequences of their decision.

Question 19 (1 point)

The benefit from consuming more of a good or service is the

Question 19 options:

a)	marginal benefit.

b)	economic benefit.

c)	total benefit.

d)	opportunity benefit.

Question 20 (1 point)

Positive statements are about

Question 20 options:

a)	the way things are.

b)	the way things should be.

c)	direct relationships between two variables.

d)	indirect relationships between two variables.

Question 21 (1 point)

Which is true?

Question 21 options:

a)	Normative statements depict what will happen.

b)	Normative statements can be tested.

c)	Positive statements involve an opinion.

d)	Normative statements often use the word "should".