Question

l. The most fundamental economic problem is a) Scarcity b) Security c) Health ) The fact that the United States buys more goods from foreigners than we sell to foreigners 2. Scarcity is a situation in which a) People cannot satisfy all their wants. b) Most people can get only bare necessities c) People can satisfy all their wants. 3. Scarcity requires that people must a) Cooperate c)Trade b) Compete d) Make choices 4. Which of the following are considered factors of production used to produce goods and services? A) Land b) Labor c) Capital d) Entrepreneurship e) All of the above 5. Natural resources are included as part of which factor of production? a)Labor b) Capital c) Entrepreneurship d) land 6. The production possibilities frontier is a) Upward sloping and reflects unlimited choices b) Upward sloping and reflects tradeoffs in choices c) Downward sloping and reflects unlimited choices d) Downward sloping and reflects tradeoffs in choices 7. When production is efficient a) Our choice of goods can be either on or within the PPF b) We can satisfy all our wants c) The opportunity cost is as low as possible d) We face a tradeoff and incur an opportunity cost

Answer 1

Scarcity people cannot satisfy all their wants make choices All of the above , labour, capital and are considered to be the factors of production. land Downward sloping and reflects tradeoffs in choices \r\n we face a tradeoff and incure an opportunity cost A decrease in demand for tiers Since gasoline and tiers are complementary goods, and increase in price of gasoline would decrease the demand for gasoline and tiers and vice-versa a A left shift in the show supply curve market trade off model marginal productive efficiency allocative efficiency opinion