ERACCELLMITS.CHOICESANDALTERNATIVES Multiple Choice ldentify the choice that bes
ID: 1134436 • Letter: E
Question
ERACCELLMITS.CHOICESANDALTERNATIVES Multiple Choice ldentify the choice that best completes the statement or answers the question. 1. Scarcity: a. exists because resources are limited while human wants are unlimited. b. means we are unable to have as much as we would like to have. c. will likely be eliminated as technology continues to expand. d. is not an issue addressed in economics. 2. People are forced to make choices because of a unlimited wants and unlimited resources b. limited wants and unlimited resources. c unlimited wants and limited resources d. limited wants and limited resources e. irrational wants and limited resources. 3. Natural resources are: a. not considered scarce because no one pays for them. b only desired for use in producing other goods cincluded in the category of resources called land. d. available in unlimited quantities. 4. Which of the following is closest to the definition of capital? a. c and e b. cand d. e-Tools, equipment, means of transportation d. Factories and machinery money Which one of the following is the most accurate definition of economics? e. Borrowed a Economics is the study of stocks and bonds. b. Economics is the study of how people allocate unlimited resources. c. Economics is the study of how consumers choose to spend their income d. Economics is the study of how society chooses to allocate scarce resources a. microeconomics concentrates on individual markets while macroeconomics focuses b. microeconomics concentrates on the behavior of individual consumers while macroeco- c. microeconomics concentrates on the behavior of individual consumers and firms while d. microeconomics explores the causes of inflation while macroeconomics focuses on the 6. The basic difference between macroeconomics and microeconomics is: primarily on international trade. nomics focuses on the behavior of firms. macroeconomics focuses on the performance of the entire economy causes of unemploExplanation / Answer
1. a. exists because resources are limited while human wants are unlimited
(Unlimited wants and limited resouces are reasons of scarcity)
2. c. unlimited wants and limited resources
(Choices are required to be made because of scarcity of resources combined with unlimited human wants)
3. c. included in the category of resources called land
(natural resources are the resources which are provided by nature)
4. b. c and d
(Capital means man made items which is used to produce other goods/services.)
5. d. Economics is the study of how society choose to allocate scarce resouces.
(An economy is characterised by unlimited wants and limited resources. So, economics is mainly the study of how a society chooses to allocate its scarce resources among its unlimited wants)
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