Introduction to Applied Economics ECO01

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What is the main task of economics according to the text?

Utilization of wealth for production and consumption

Making choices based on opportunity cost

Allocation of scarce resources to answer unlimited human wants (correct)

Analysis of the key elements of social science

What is the primary concern of economics regarding human wants?

Physical comfort and interests

Love and concern for justice

Unlimited material wants (correct)

Analysis of nonmaterial wants

Which of the following best defines opportunity cost?

Making choices based on scarcity

The utilization of wealth for production and consumption

Forgone benefits of an alternative when making a choice (correct)

Human wants that multiply over time

In economics, what does scarcity refer to?

The situation where human wants exceed available resources Signup and view all the answers

Which element is NOT considered a key element in analyzing economics according to the text?

Investment depreciation Signup and view all the answers

What does Economics primarily focus on managing?

Material human wants Signup and view all the answers

How does the market system address shortage or surplus?

By increasing prices to meet high demand Signup and view all the answers

In what situations is the command system used as an allocation mechanism?

During national emergencies and disasters Signup and view all the answers

What role does culture and social norms play in the tradition of allocation?

Uses community pressure to temper wants Signup and view all the answers

Why is economics considered an applied science?

To provide solutions to real-world economic problems Signup and view all the answers

What characterizes the market system as an allocation mechanism?

Transacting between buyers and sellers at prices Signup and view all the answers

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. Signup and view all the answers

What is the basis for allocation in the Allocation Priority system?

Price or market mechanism Signup and view all the answers

How does economics study how society creates its material wealth?

By using the scientific method Signup and view all the answers

What is scarcity defined as in economics?

Limitation of resources to meet expanding human wants Signup and view all the answers

What differentiates human wants according to economic analysis?

Income and taste variations Signup and view all the answers

What are the economic goals of society as mentioned in the text?

Material survival, stability, and growth Signup and view all the answers

From the text, what does Economics as a Social Science primarily study?

How people interact to sustain and develop society's material dimension Signup and view all the answers

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