What is the overriding reason why households and societies face many decisions?
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Show Chapter 1 Ten Principles of Economics 1. Resources are a.scarce for households but plentiful for economies.c.scarce for households and scarce for economies. b.plentiful for households but scarce for economies. d.plentiful for households and plentiful for economies. 2. Economics deals primarily with the concept of a.scarcity.b.money.c.poverty.d.banking. 3. Which of the following is correct? a.The word economy comes from the Greek word for “rational thinker.” b.Economists study the management of scarce resources. c.Because economists believe that people pursue their best interests, they are not interested in how people interact. d.All of the above are correct. 4. The overriding reason why households and societies face many decisions is that a.resources are scarce.c.incomes fluctuate with business cycles. b.goods and services are not scarce.d. people, by nature, tend to disagree. 5. The phenomenon of scarcity stems 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. 6. Approximately what percentage of the world's economies experience scarcity? a.10%b.40%c.85%d.100% 7. When a society cannot produce all the goods and services people wish to have, it is said that the economy is experiencing a.scarcity.b.surpluses.c.inefficiencies.d.inequalities. 8. Which of the following products would be considered scarce? a.automobilesc. pickles b.baseballs autographed by Babe Ruthd.All of the above are correct. 9. Economics is the study of a.production methods.c.how households decide who performs which tasks. b.how society manages its scarce resources.d. the interaction of business and government. 10. In most societies, resources are allocated by a.a single central planner. b.a small number of central planners. c.those firms that use resources to provide goods and services. d.the combined actions of millions of households and firms. 1-5 CABAD 6-10 DAD B D When society gets the most it can from its scarce resources then the outcome is called?Efficiency means that society is getting the maximum benefits from its scarce resources. Equality means that those benefits are distributed uniformly among society's members.
What is the primary determinant of a country's standard of living?Yet there is a generally accepted measure for standard of living: average real gross domestic product (GDP) per capita. Let's break it down piece by piece: GDP measures annual economic output — the total value of new goods and services produced within a country's borders.
How are resources allocated in most societies?1Lotteries, markets, barter, rationing, and redistribution of income are all methods commonly used to. allocate scarce resources.
Which of the following is a decision that economists study?Economists study all aspects of people's monetary decisions since they affect all types of markets. This means they study how much people work in order to study how the labor market works.
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