Because resources are scarce relative to wants, the study of economics concerns
A) how money is important to people.
B) how individuals, businesses, and governments make choices.
C) how money is used to buy what people want.
D) None of the above are correct.
Ques. 2If the quantity desired of something exceeds the amount available at zero price, that item is called
A) capital.
B) an economic good.
C) an intangible good.
D) a bad.
Ques. 3According to the law of demand, other things being equal
A) when the price a good goes up, then people buy more of that good.
B) when the price a good goes up, then people buy less of that good.
C) when people's income goes up, then they buy more of a good.
D) when people's income goes up, then they buy less of a good.
Ques. 4The law of demand includes the statement other things being equal. These other things include all of the following EXCEPT
A) the price of that good in the law of demand.
B) consumers' income.
C) consumers' tastes and preferences.
D) the number of potential buyers.
Ques. 5Which of the following is NOT a focus of the study of economics?
A) how individual preferences are formed
B) unemployment
C) inflation
D) prices in particular markets
Ques. 6Economic goods are defined as
A) tangible items only.
B) services only.
C) anything from which an individual derives satisfaction.
D) any item which is available in sufficient quantity at zero price.
Ques. 7Economics
A) is a social science.
B) is concerned with limited resources.
C) is concerned with unlimited wants.
D) All of the above are correct.
Ques. 8Services can be thought of as
A) unvalued goods.
B) unwanted goods.
C) free goods.
D) intangible goods.
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