Question

1- Because resources are scarce relative to individuals' wants, the study of economics concerns

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how money is important to people.

how individuals make choices relating to how to use those scarce resources.

2- A decision made by a rational person

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is intended to make the person worse off.

would always make the person wealthier.

is identical to a decision that would be made by any other person facing the same choices.

is intended to increase the individual's utility.

3- Scarcity affects

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only rich people.

only poor people.

only middle-income people.

all people.

4- Services can be thought of as

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unvalued goods.

unwanted goods.

free goods.

intangible goods.

5- Opportunity cost exists because of

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poverty.

scarcity.

greed.

self-interest.

6- A simplified representation of the real world that is used to explain economic phenomena is a(n)

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map.

model.

7- Economic theory predicts that people make choices in a manner that

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makes them well liked by others.

maximizes their utility and minimizes their costs.

8- reflects the fact that resources are unlimited.

shows that they do not respond to monetary incentives.

assumption.

implication.

9- Economic theory predicts that people make choices in a manner that

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makes them well liked by others.

maximizes their utility and minimizes their costs.

reflects the fact that resources are unlimited.

shows that they do not respond to monetary incentives.

10- "Ceteris paribus" assumption means

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the role of rational self-interest in the economy.

that nothing else changes except the variables under consideration.

relying on real-world data in evaluating the usefulness of a model.

analysis that is strictly limited to making either purely descriptive statements or scientific predictions.

Answer 1