Question 1

Which of the following is not a part of the definition of economics?

Accepted Answer

Money

Answer

People Making Choices

Answer

Satisfy Unlimited Wants

Answer

Scarces Resources

Question 2

How people, groups and societies deal with scarce resources is called?

Accepted Answer

Allocation Problem

Answer

Diamond-Water Paradox

Answer

Utility

Answer

Diminishing Returns

Question 3

The assumption economists make that says we will look at two variable while all others are held constant is called?

Accepted Answer

Ceteris Paribus

Answer

Rational Choice

Answer

Pig Principle

Answer

Homo Economicus

Question 4

The assumption economists use in that people will use all their resources is called?

Accepted Answer

Pig Principle

Answer

Ceteris Paribus

Answer

Allocation System

Answer

Marginal Utility

Question 5

What is the basic law of economics?

Accepted Answer

There is no such thing as a free lunch.

Answer

Ask not what your country can do for you but what you can do for your country.

Answer

A penny saved is a penny earned.

Question 6

Which of the following is NOT one of the three questions involved in organzing an economy?

Accepted Answer

Why should we produce it?

Answer

What should we produce?

Answer

How should we produce it?

Answer

For whom should we produce it?

Question 7

The cost of using resources for one purpose compared to another is which of the following?

Accepted Answer

Opportunity Cost

Answer

Variable cost

Answer

Sunk Cost

Answer

Fixed Cost

Question 8

When considering the opportunity cost, which of the following is true?

Accepted Answer

You should only consider the next best option

Answer

Sunk costs should always play into decisionmaking.

Answer

All options are to be considered

Answer

There no opportunity costs because we have unlimited resources.

Related quizzes