Title: What Is Economics?
Course: Demo 1

Q: The economic term “scarcity” describes which of the following conditions?
- Global oil reserves are limited.
- The number of doses of the flu vaccine is not as great as the population.
- The number of slices of pizza remaining on the buffet at a local pizzeria.
A: Global oil reserves are limited.; The number of doses of the flu vaccine is not as great as the population.

Q: Economics is best described as the study of:
- money and financial systems
- sustainable business practices
- how scarcity impacts decisions
A: how scarcity impacts decisions

Q: The economic term “scarcity” describes the condition where:
- there are more consumers with a high income than with a low income
- resources are consumed at a rate that exceeds a business’s forecast for demand
- human wants for goods, services, and resources exceed what is available
A: human wants for goods, services, and resources exceed what is available

Q: Which of the following items are scarce?
- money
- time
- natural resources
A: money; time; natural resources

Q: A hotel staff might be comprised of front desk clerks, housekeeping staff, concierges who provide directions and assistance with activities, and valets who help with luggage and parking. In economic terms, the staff of a hotel is/are an example(s) of:
- scarcity
- natural selection
- division of labor
A: division of labor

Q: The division of labor allows for increased productivity due to:
- scarcity
- natural selection
- specialization
A: specialization

Q: The local golf course just doubled in size from 18 to 36 holes. The cost of maintaining the course has not doubled; it is up by only 60%. If other costs responded similarly, this is an example of:
- the law of supply.
- scarcity.
- economies of scale.
A: economies of scale.

Q: Because resources such as time and money are scarce, businesses, governments and individuals make decisions regarding which of the following:
- how they will use their time and money to receive the greatest benefit.
- whether or not to charge people for using national parks.
- whether they want to produce something domestically or import it.
A: how they will use their time and money to receive the greatest benefit.; whether or not to charge people for using national parks.; whether they want to produce something domestically or import it.

Q: The field of economics that focuses on the actions of individual agents within the economy, like households, workers, and businesses is:
- macroeconomics.
- global economics.
- microeconomics.
A: microeconomics.

Q: An analysis of unemployment rates of the countries in North America since 2008 is an application of:
- microeconomics
- financial economics
- macroeconomics
A: macroeconomics

Q: A microeconomic decision may include(s):
- the price that a local automobile repair shop will charge for its services.
- how a family plans to pay for college tuition for the children.
- the rate of money supply growth set by the Federal Reserve of the United States.
A: the price that a local automobile repair shop will charge for its services.; how a family plans to pay for college tuition for the children.

Q: Which of the following measures are macroeconomic in scope?
- Tax revenue collected by the United States Treasury.
- The trade deficit.
- The taxes deducted from your last paycheck.
- The amount by which your retirement plan balance appreciated.
A: Tax revenue collected by the United States Treasury.; The trade deficit.