ECON201 NVCC Test 1 | 100% Correct
Answers | Verified | Latest 2024 Version
Economics may best be defined as: - ✔✔Social science concerned with how individuals, institutions, and
society make optimal choices under conditions of scarcity
The economizing problem is one of deciding how to make best use of: - ✔✔Limited resources to satisfy
virtually unlimited wants.
The main function of an entrepreneur is to: - ✔✔Innovate
Macroeconomics approaches the study of economics from the viewpoint of: - ✔✔The entire economy
According to economists, economic self interest: - ✔✔is a reality that underlies economic behavior.
The assertion that "There is no free lunch" means that: - ✔✔all production involves the use of scarce
resources and thus the sacrifice of alternative goods.
Al sold gold coins for $1000 that he bought a year ago for $1000. He says, "At least I didn't lose any
money on my
financial investment." His economist friend points out that in effect he did lose money, because he could
have received a 3 percent return on the $1000 if he had bought a bank certificate of deposit instead of
the coins. The economist's analysis in this case incorporates the idea of - ✔✔opportunity costs
"Economics is concerned with how individuals, institutions, and society make optimal choices under
conditions of
scarcity." This statement is: - ✔✔positive and correct.
Economic models: - ✔✔emphasize basic economic relationships by purposefully simplifying the
complexities of the real world.
