← All Quizzes
Economics Practice Quiz 122
10 questions · 12 minutes
12:00
Q1.What is the contrast between 'goods' and 'services'?
Explanation: The footnote contrasts goods (physical, tangible objects) with services (intangible satisfaction of wants and needs).
Q2.In the simple economy, what resource might some individuals have only?
Explanation: Some others in society may not have any resource excepting their own labour services.
Q3.What is the relationship between an individual's resources and her needs?
Explanation: The text states 'no individual has unlimited resources compared to her needs', implying resources are limited.
Q4.What is the fundamental economic problem faced by every society?
Explanation: Every society has to face scarcity of resources, which gives rise to the problem of choice.
Q5.What forces a family to make a choice between different goods and services?
Explanation: Because the family's resources are limited, it is forced to make a choice between different goods and services.
Q6.What must happen if people in society want more corn than farming units are producing?
Explanation: The text says if people want more corn, resources used in production of other goods may be reallocated to corn production.
Q7.What are the two basic economic problems faced by society?
Explanation: The two basic economic problems are scarcity (unlimited wants vs limited resources) and choice (deciding how to allocate scarce resources).
Q8.What does the term 'allocation of resources' refer to in the text?
Explanation: The footnote defines allocation of resources as how much of which resource is devoted to production of each good and service.
Q9.What gives rise to the problem of choice in an economy?
Explanation: It is the scarcity of resources that gives rise to the problem of choice.
Q10.What must be compatible in a society?
Explanation: There must be compatibility between what people collectively want to have and what they produce.
Score: 0 / 10
0 correct ·
0 wrong ·
0 unanswered
0% accuracy ·
Time: 00:00