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Principles of Economics

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15 views3 pages

Principles of Economics

Uploaded by

Naglaa Ahmed Magdy
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Principles of Economics 1 (Microeconomics) ECO 101

Fall 2023
Dr. Heba El-Sayed Mohamed
Chapter 1: Ten Principles of Economics
Section Sheet 1

State weather the following statements are True or False , with correction.
1. Scarcity means that there is less of a good or resource available than people wish to have.

Answer: True

2. Economics is the study of how evenly goods and services are distributed within society.

Answer: False; it is the study of how society manages its scarce resources.

3. Economics is the study of how society allocates its unlimited resources to satisfy people limited needs.

Answer: False; Limited resources.

4. Choosing not to attend a concert so that you can study for your exam is an example of a tradeoff.

Answer: True

5. Microeconomics is a branch of economics focuses on the economy as a whole such as


unemployment problem.

Answer: False
6. Factors of production are the resources needed to produce goods and provide services by the
producers ( Firms) .
Answer:
7. The objective of the producer is to maximize his profit and minimize his cost
Answer: True

8. The opportunity cost is the cost of giving up something for something else.

Answer: True

9. The market should be a physical place whereas consumers & producers can trade
together in goods only .

Answer: False

Multiple choice Questions

1-Resources are
a. scarce for households but plentiful for economies.
b. plentiful for households but scarce for economies.
c. scarce for households and scarce for economies.
d. plentiful for households and plentiful for economies.

Answer: C

2- The phenomenon of scarcity comes from the fact that


a. most economies’ production methods are not very good.
b. in most economies, wealthy people consume disproportionate quantities of goods
and services.
c. governments restrict production of too many goods and services.
d. resources are limited.

Answer: D

3-Economics is the study of


a. production methods.
b. how society manages its scarce resources.
c. how households decide who performs which tasks.
d. the interaction of business and government.

Answer: B
4-The principle that "people face tradeoffs" applies to
a. individuals.
b. families.
c. societies.
d. All the above are correct.
Answer: D

5-Efficiency means that


a. society is conserving resources to save them for the future.
b. society's goods and services are distributed equally among society's members.
c. society's goods and services are distributed fairly, though not necessarily equally,
among society's members.
d. society is getting the maximum benefits from its scarce resources.
Answer: D

6- The opportunity cost of an item is


a. the number of hours needed to earn money to buy the item.
b. what you give up for getting that item.
c. usually less than the dollar value of the item.
d. the dollar value of the item.

Answer: B

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