The study of economics is primarily concerned with (1 Point)keeping private businesses from losing money.demonstrating that capitalistic economies are superior to socialistic economies.choices that are made in seeking the best use of resources.determining the most equitable distribution of society's output.

Why we study economics

Economic …..................... is a characteristic tendency of capitalist economiesa.growthb.developmentc.cumulationd.agglomeration

MCQ1-22. Economics is best defined as the study ofQuestion 1Answera.How government regulates economic markets to ensure fair competitionb.How business firm operates to achieve the highest profitc.How central bank predicts inflation, unemployment, and economic growthd.How society efficiently manages its scarce resource

21.Suppose that a university decides to spend $1 million to upgrade personal computers and scientific equipment for faculty rather than spend $1 million to expand parking for students. This example illustrates (1 Point)distorted priorities.opportunity costs.increasing opportunity costs.productive efficiency.22.Economists contend that most economic decisions are (1 Point)random.irrational.spontaneous.purposeful.23.Economics is a social science that studies how individuals, institutions, and society may (1 Point)expand the amount of resources available to them.attain a minimum level of production.best use resources to maximize satisfaction of economic wants.reduce the amount of goods and services they need.24.The basic truth that underlies the study of economics is the fact that we all face (1 Point)death.taxes.risk.scarcity.25.A recurring theme in economics is that people (1 Point)have unlimited resources but limited economic wants.can increase resources by limiting their economic wants.have limited economic wants and limited resources.have unlimited economic wants but limited resources.26.As a consequence of the problem of scarcity, (1 Point)there is never enough of anything.individuals have to make choices from among alternatives.only some people can "have it all."things which are plentiful have relatively high prices.27.Which of the following is a distinguishing feature of a command system? (1 Point)private ownership of all capitalcentral planningheavy reliance on marketswidespread dispersion of economic power28.Which of the following is a feature of a command system? (1 Point)a legal envirnoment that protects private propertygovernment's role is very limitedgovernment owns most property resourcesconsumer sovereignty29.Which of the following is a distinguishing feature of laissez-faire capitalism? (1 Point)public ownership of all capitalcentral planningminimal government interventionan economy based on bartering30.Which of the following is a feature of laissez-faire capitalism? (1 Point)people are free to interact in markets to buy and sell goods and servicesgovernment enforces the economic planbusiness firms rely on the government for their resourcespublic ownership of all capital31.Examples of command economies are(1 Point)the United States and Japan.Sweden and Norway.Mexico and Brazil.Cuba and North Korea.

Which of the following is the best definition of economics?A.the study of how business firms decide what inputs to hire and what outputs to produceB.the study of how consumers spend their incomeC.the study of how the federal government allocates tax dollarsD.the study of how individuals and societies choose to use the scarce resources that nature and previous generations have provided