18 Questions
What is the main task of economics according to the text?
Allocation of scarce resources to answer unlimited human wants
What is the primary concern of economics regarding human wants?
Unlimited material wants
Which of the following best defines opportunity cost?
Forgone benefits of an alternative when making a choice
In economics, what does scarcity refer to?
The situation where human wants exceed available resources
Which element is NOT considered a key element in analyzing economics according to the text?
Investment depreciation
What does Economics primarily focus on managing?
Material human wants
How does the market system address shortage or surplus?
By increasing prices to meet high demand
In what situations is the command system used as an allocation mechanism?
During national emergencies and disasters
What role does culture and social norms play in the tradition of allocation?
Uses community pressure to temper wants
Why is economics considered an applied science?
To provide solutions to real-world economic problems
What characterizes the market system as an allocation mechanism?
Transacting between buyers and sellers at prices
How does the command system differ from the market system in terms of resource allocation?
Command system is dictated by government planning, while market system relies on community ownership.
What is the basis for allocation in the Allocation Priority system?
Price or market mechanism
How does economics study how society creates its material wealth?
By using the scientific method
What is scarcity defined as in economics?
Limitation of resources to meet expanding human wants
What differentiates human wants according to economic analysis?
Income and taste variations
What are the economic goals of society as mentioned in the text?
Material survival, stability, and growth
From the text, what does Economics as a Social Science primarily study?
How people interact to sustain and develop society's material dimension
Test your knowledge on key concepts in applied economics such as the allocation of scarce resources, management of household resources, and the satisfaction of human wants. Explore definitions of economics, wealth utilization, making choices, and opportunity cost.
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