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Chapter 01 - The Art and Science of Economic Analysis 1. What is the meaning of unlimited wants? a. that people always desire more of at least one good b. that each person has an unlimited desire for every good c. that selfish people are NOT concerned about other people d. that people buy goods without regard to what they can afford ANSWER: a 2. What statement describes the reality of scarcity? a. There are NOT enough jobs available to all people. b. There are NOT enough resources to satisfy people’s unlimited wants. c. There are NOT enough resources to satisfy people’s limited wants. d. There are NOT enough taxes to fund daycare spaces. ANSWER: b 3. Which of the following best describes when scarcity occurs? a. when resources are unlimited b. when there is a shortage, so buyers cannot obtain the goods they want c. when there is a surplus, so sellers cannot sell the goods they produce d. when resources are insufficient to satisfy unlimited wants ANSWER: d 4. Why does economic scarcity exist? a. because people have wants that are unlimited relative to the availability of resources to satisfy those wants b. because governments have the means to provide as many services as it decides to c. because individuals do NOT have to make choices d. because NOT everyone has unlimited wants ANSWER: a 5. What occurs when people’s wants are unlimited but resources are scarce? a. Only rich people get everything they want. b. People must make choices. c. More services are available than goods. d. More goods are available than services. ANSWER: b 6. Which of the following describes the economic reality of scarcity? a. It exists only in countries that are NOT highly industrialized. b. It is likely to disappear as production increases. c. It is sure to disappear as technology improves. d. It will exist as long as resources are available in limited amounts. Copyright Cengage Learning. Powered by Cognero.
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