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In his book, An Inquiry into the Nature and Causes of the Wealth of Nations, economist Adam Smith argued that individuals
A) always tend to act in an altruistic manner.
B) always consider the impact of their actions on the welfare of others.
C) are motivated by self-interest.
D) are generally not concerned with economic questions.
5.
Which of the following statements is true about scarcity?
A) Only expensive goods are considered to be scarce.
B) Scarcity is not a problem for the wealthy.
C) Scarcity is only a problem when a country has too large a population.
D) Scarcity arises when there is a wide disparity in income distribution.
E) None of the above
6.
An economic ________ is a simplified version of some aspect of economic life used to analyze an economic issue.
A) market
B) model
C) variable
D) trade-off
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