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Economics is best described as

28/03/2021 Client: saad24vbs Deadline: 2 Day

Scarcity exists because: (Points : 10)
a. human wants exceed the resources available to satisfy them.
b. some individuals have low income.
c. the costs of production are high.
d. some people make bad economic decisions
e. people take too much leisure time.

2. Which of the following statements best describes the study of economics? Economics studies how: (Points : 10)
a. to organize production so that scarcity does not occur.
b. firms make profits.
c. we make choices in the face of scarcity.
d. to create incentives so that scarcity does not exist.
e. businesses reach decisions.

3. The study of economics is best described as a study of: (Points : 10)
a. the factors that influence the stock and bond markets.
b. capitalism.
c. the choices made in producing goods and services.
d. coping with scarcity, and choices made as a result of scarcity in a society.
e. how people earn a living.

4. Economics is the social science that studies: (Points : 10)
a. the real reasons people buy goods and services.
b. the psychology of individuals and businesses.
c. whether a nation has enough natural resources.
d. how people make choices to cope with scarcity.
e. how choices made in the social interest could eliminate scarcity.

6. Items that are purchased by individuals for their own enjoyment are called (Points : 10)
a. consumption goods and services.
b. capital goods.
c. government goods and services.
d. exports of goods and services.
e. private goods
7. What would be an example of consumption good? (Points : 10)
a. Antonio, the manager of the local Taco Hut, purchases a new deep fryer.
b. The local driver's license office purchases a new digital camera and printer.
c. Rhianna gets a haircut.
d. Jake buys an iPhone.
e. Donald Trump purchases furniture for his office.

8. The largest share of total production in the United States is (Points : 10)
a. consumption goods and services.
b. capital goods.
c. government goods and services.
d. exported goods and services.
e. imported goods and services.

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