Please help me with these 10 multiple choice question, thank youfor help. 1. Eco
ID: 1244617 • Letter: P
Question
Please help me with these 10 multiple choice question, thank youfor help.1. Economics is most importantly concerned with:
a. how to profit from trading in the stock market.
b. government taxation and spending.
c. study how we allocate scare resources to satisfy unlimitedwants.
d. how to reduce inflation.
e. how to successfully launch a business.
2. Scarcity exist because of:
a. the allocation of goods by prices.
b. specialization and division of labor.
c. the market machanism.
d. unlimited wants and limited resources.
3. Fundamentally, economics is concerned with:
a. how scare resources are allocated to satisfy limited wants.
b. how limited resources are allocated to satisfy scare wants.
c. how limited resources are allocated to satisfy unlimitedwants.
d. how limited wants can be used to satisfy limited resources.
e. how unlimited wants can be used to satisfy unlimitedresources.
4. Scarcity implies that:
a. consumers are too poor to afford the goods and servicesavailable.
b. at the current market price, consumers are willing to purchasemore of a good than suppliers are willing to produce.
c. it is impossible to completely fulfill the unlimited humandesire for goods and services with the limited resourcesavailable.
d. consumers would be willing to purchase the same quantity of agood at a higher price.
5. An economy's resources:
a. consist of land, labor, capital, and entrepreneurial skills.
b. are unlimited in a country like the United States.
c. are always efficiently utilized in wealthy nations.
d. consist of land, labor, and entrepreneurial skills but notcapital.
6. In a market economy, the goods produced go to who(m):
a. have sufficient income and are willing to pay the price askedfor those goods.
b. the government views as best suited for consumption.
c. business firms choose to favor.
d. desire the goods the least.
e. need them the most.
7. In a market economy, resources are allocated:
a. by central planners using a price system.
b. by decentralized planners at the local level.
c. by individual decision makers responding to market prices.
d. by government bureaucracies because of the absence of a pricesystem.
8. The production possibilities curve is:
a. a graph that show the combinations of output which are mostprofitable to produce.
b. a graph that shows the various combinations of output it ispossible for an economy to produce given its available resourcesand technology.
c. a graph that shows the various combinations of resources thatcan be used to produce a given level of output.
d. a curve that shows the quantity of output that will be offeredfor sale at various prices.
9. Any point not on the production possibilities curve cannot beoptimal. What reasoning supports this?
a. A point inside the frontier implies that society is not facingup to the problem of scarcity.
b. Operating inside the frontier means sacrificing economic growthfor current consumption, and economic growth is always a goal worthpursuing.
c. Operating inside the frontier leads to inflation and inflationcan be very costly.
d. Operating inside the frontier is inefficient and representswasted resources.
10. If an economy is operating inside its production possibilitiescurve for tanks and bread:
a. scarcity does not exist.
b. all resources are being used efficiently.
c. production of bread can increase by sacrificing the productionof tanks,
d. production of bread and tanks can both increase.
e. the economy is operating at full employment.
Explanation / Answer
1. Economics is most importantly concerned with: a. how to profit from trading in the stock market. b. government taxation and spending. c. study how we allocate scare resources tosatisfy unlimited wants. d. how to reduce inflation. e. how to successfully launch a business. 2. Scarcity exist because of: a. the allocation of goods by prices. b. specialization and division of labor. c. the market machanism. d. unlimited wants and limitedresources. 3. Fundamentally, economics is concerned with: a. how scare resources are allocated to satisfy limited wants. b. how limited resources are allocated to satisfy scare wants. c. how limited resources are allocated to satisfyunlimited wants. d. how limited wants can be used tosatisfy limited resources. e. how unlimited wants can be used to satisfy unlimitedresources. 4. Scarcity implies that: a. consumers are too poor to afford the goods and servicesavailable. b. at the current market price, consumers are willing to purchasemore of a good than suppliers are willing to produce. c. it is impossible to completely fulfill theunlimited human desire for goods and services with the limitedresources available. d. consumers would be willing topurchase the same quantity of a good at a higher price. 5. An economy's resources: a. consist of land, labor, capital, andentrepreneurial skills. b. are unlimited in a country like the United States. c. are always efficiently utilized in wealthy nations. d. consist of land, labor, and entrepreneurial skills but notcapital. 6. In a market economy, the goods produced go to who(m): a. have sufficient income and are willing to paythe price asked for those goods. b. the government views as best suited for consumption. c. business firms choose to favor. d. desire the goods the least. e. need them the most. 7. In a market economy, resources are allocated: a. by central planners using a price system. b. by decentralized planners at the local level. c. by individual decision makers responding tomarket prices. d. by government bureaucracies because ofthe absence of a price system. 8. The production possibilities curve is: a. a graph that show the combinations of output which are mostprofitable to produce. b. a graph that shows the various combinations ofoutput it is possible for an economy to produce given its availableresources and technology. c. a graph that shows the various combinations of resources thatcan be used to produce a given level of output. d. a curve that shows the quantity of output that will be offeredfor sale at various prices. 9. Any point not on the production possibilities curve cannot beoptimal. What reasoning supports this? a. A point inside the frontier implies that society is not facingup to the problem of scarcity. b. Operating inside the frontier means sacrificing economic growthfor current consumption, and economic growth is always a goal worthpursuing. c. Operating inside the frontier leads to inflation and inflationcan be very costly. d. Operating inside the frontier is inefficientand represents wasted resources. 10. If an economy is operating inside its production possibilitiescurve for tanks and bread: a. scarcity does not exist. b. all resources are being used efficiently. c. production of bread can increase by sacrificing the productionof tanks, d. production of bread and tanks can bothincrease. e. the economy is operating at fullemployment.