1061. Economics is the study of :

A. All businesses, including their operations, reasons for being there, and effects on us:
B. The choices that people have to make because there are only so many goods and services *
C. How to save money, spend money, invest savings, and keep a checkbook balanced
D. The stock market, the bond market, and investment strategies
E. Big Business and how it affects our lives

1062. “Scarcity” in economics refers to the following:

A. Everything worthwhile costs money
B. No society can produce enough to fully satisfy people’s needs for goods *
C. Some people are poor even in wealthy societies like the United States
D. Sometimes a product runs out if its price is set too low.

1063. Scarcity means that:

A. We can’t have everything we want
B. We have to choose between the things we want
C. Most activities come with costs
D. We have to give up something in order to get other things
E. All of the preceding is accurate *

1064. A recurring theme in economics is :

A. Individuals have limitless needs notwithstanding restricted assets *
B. There are limitless assets
C. Our nation is rich; We just don’t know it.
D. People have few needs despite having few resources.

1065. What does the phrase ” there is no such thing as a free lunch” means?

A. Individual must always pay money for the food they eat
B. No restaurants owner will provide food patrons unless they pay her.
C. Restaurant owners act selfishly
D. Consumption of any good requires that other goods to be given up (foregone) *

1066. Can economic theories be tested ?

A. No, Since individual will seldom respond in predictable ways
B. Yes, because everyone reacts the same way to the same situations.
C. No, because it is impossible to predict the general behavior of a large number of people.
D. Yes, because people will typically react in predictable ways to changes in costs and benefits *

1067. In financial matters we frequently say that a specific occasion will happen “as long as different things stay something very similar “. The condition in which other things do not change is also known as

A. Ceteris paribus *
B. Marginal decision-making
C. Incentives
D. Opportunity cost

1068. Economic theory assumes that people :

A. Greedy and self-centered behavior with no regard for the well-being of others
B. Selfish behavior
C. Are not motivated by self-interest
D. Are motivated by self-interest but still might be concerned for the welfare of others *

1069. Why does it make sense to assume that people are rational , If you want to predict their behavior?

A. People don’t consider how they feel when making decisions.
B. People who act in a way that best gets them what they want will likely do it again and learn from their mistakes.
C. People never make mistakes and usually choose the right option every time.
D. People always use logic to figure out what to do.

1070. Macro economics deals with :

A. Just the choices made by people and their outcomes
B. Just the choices made by organizations and their outcomes
C. Generally huge scope choices made by nations and government , and their outcomes *
D. Just the choices distraught by people yet not the outcomes .