Economics is most precisely defined as
A) a study of what people need to survive.
B) a study of how culture evolves in different geographic areas.
C) the same as the study of finance and management.
D) the study of how people make choices.
Ques. 2The conversion of resources into consumer goods or services is called
A) human capital.
B) production.
C) opportunity cost.
D) absolute advantage.
Ques. 3The concept of demand in economics refers to
A) the different quantities of a good or service people will buy at different possible prices.
B) the different types of goods and services that people of different income levels want to buy.
C) how changes in the prices of all goods affect people's buying behavior.
D) changes in people's consumption behavior over time.
Ques. 4In economics, demand refers to
A) the intensity of desire for a good.
B) the amount of a good people need rather than the amount they want.
C) the satisfaction a good will provide a person.
D) how much of a good people will buy at any price during a given time period.
Ques. 5In economics, the term physical capital
A) refers to funds used by businesses to acquire goods and services.
B) refers to all manufactured resources used for production.
C) refers to the process of raising funds through the stock market.
D) defines the stock of merchandise already produced.
Ques. 6________ are the things that are used to produce items that satisfy people's wants.
A) Concepts
B) Production possibilities curves
C) Resources
D) Costs
Ques. 7Resources are
A) unlimited.
B) able to be replicated in large quantities.
C) what people would buy if their income was unlimited.
D) used to produce goods and services to satisfy people's wants.
Ques. 8Physical capital is distinguished from human capital because
A) physical capital refers to trained people.
B) physical capital refers to equipment and machinery, whereas human capital refers to trained people.
C) human capital refers only to day laborers.
D) physical capital refers to trained people, whereas human capital refers to equipment and machinery.
Ques. 9Economics is a study of
A) how to make money in the stock market.
B) how to run a business successfully.
C) the allocation of scarce resources.
D) personal finance.
Ques. 10In economic terminology, the accumulated training and education that workers receive to increase their productivity is referred to as
A) entrepreneurship.
B) human capital.
C) labor.
D) physical capital.
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