Question

1) Fill in the blank: Economics is the study of ________ and its ________.

A) greed; desirable consequences

B) choice; unintended consequences

C) money; financial consequences

D) competition; legal consequences

2) Economics is the study of

A) Why people are greedy.

B) Why the government is ruining our lives.

C) Why the Dow Jones Industrial Average moves around.

D) The choices people make when confronted with scarcity.

3) Economic theory assumes people want

A) material goods primarily.

B) money in preference to all other goods.

C) more of everything.

D) to advance the projects in which they are interested.

4) To economize means to

A) allocate available resources in a way that yields the most value to the economizer.

B) behave in a selfish rather than generous manner.

C) conserve as much as possible for future use.

D) put economic theory to work.

5) The economic way of thinking

A) studies facts without using theories.

B) explains how social order and cooperation emerge from the actions of individuals.

C) is free of biases and assumptions.

D) includes all of the above features.

6) Competition would probably be abolished if society could find a way to abolish

A) inequality.

B) scarcity.

C) money.

D) economists.

7) Rich and poor people have which of the following in common?

A) Scarcity

B) Economizing behavior

C) Pursuing the plans and projects in which they are interested

D) All of the above.

8) Economic theory assumes people

A) rarely act generously.

B) consistently act selfishly.

C) make choices based on a comparison of cost and benefits.

D) are fundamentally complex. Therefore, no general theory can be deduced to make sense out of the decisions and choices people make.

9) In the economic way of thinking, private property rights provide people with

A) rules of the game.

B) dependable information.

C) incentives.

D) all of the above.

10) The economic system of the United States

A) was designed by mercantilists and capitalists.

B) was designed by the framers of the U.S. constitution.

C) was designed to maximize individual freedom.

D) was the result of human intentions but not anyone's design.

Answer 1

1) B) choice; unintended consequences
(Economics is basically the study of choice and what are the consequences of those choices made.)

2) D) The choices people make when confronted with scarcity.
(Economics studies how people make choices under scarce conditions.)

3) C) more of everything.
(According to economic theory, people want more of everything in general.)

4) A) allocate available resources in a way that yields the most value to the economizer.
(Economise means to maximize the satisfaction with given resources.)

(Note: Post four multiple choice questions at a time.)