SS141 Macro-Economics Professor Patrick Yanez
Study Questions: Economic Resources – Set 1
These questions are to facilitate your discussion groups and/or tutoring sessions. Answers are listed at the end of this
file. Since our class time is limited to introducing new topics, we do not have time to review these questions in class;
please use your discussion group and/or tutoring session to review these questions.
1. The economizing problem is one of deciding how to make the best use of:
A) virtually unlimited resources to satisfy virtually unlimited wants.
B) limited resources to satisfy virtually unlimited wants.
C) unlimited resources to satisfy limited wants.
D) limited resources to satisfy limited wants.
2. The concept of economic efficiency is primarily concerned with:
A) the limited wants-unlimited resources dilemma.
B) considerations of equity in the distribution of wealth.
C) obtaining the maximum output from available resources.
D) the conservation of irreplaceable natural resources.
3. When the economist says that economic wants are insatiable, this means that:
A) economic resources are valuable only because they can be used to produce consumer
goods.
B) economic resources--land, labor, capital, and entrepreneurial ability--are scarce.
C) these wants are virtually unlimited and therefore incapable of complete satisfaction.
D) the structure of consumer demand varies from time to time and from country to
country.
4. The fundamental problem of economics is:
A) to establish a democratic political framework for the provision of social goods and
services.
B) the establishment of prices that accurately reflect the relative scarcities of products
and resources.
C) the scarcity of productive resources relative to economic wants.
D) to achieve a more equitable distribution of money income in order to mitigate
poverty.
5. The science of economics stems from the fact that:
A) the production possibilities curve is bowed inward to the origin.
B) resources are scarce relative to people's demand for goods and services.
C) individuals and institutions behave only in their self-interest.
D) historically the production possibilities curve has been shifting toward the origin.
Page 1
