Introduction to Economics 101

What is one primary reason individuals rely on each other in a society for goods and services?

Which of the following best illustrates the concept of using resources to obtain services in exchange?

How do individuals typically obtain the goods they desire but cannot produce themselves?

What does the allocation of resources in an economy primarily refer to?

What is a common characteristic of resources available to individuals in society?

Which of the following scenarios highlights the interaction between producers and consumers in an economy?

Which factor does not play a role in deciding what goods to produce in an economy?

What characterizes all economies according to the content?

Why might an economy prioritize producing investment goods over consumption goods?

What would be a likely consequence if individuals had unlimited resources?

In a simple economy, what role does the weaver primarily fulfill?

What is a key dilemma every economy faces?

How does the government's role in the U.S. economy compare to that in India?

For whom are goods produced in an economy determined by which of the following?

Which of the following is an example of a service as opposed to a good?

What has happened to the government's role in the Indian economy over recent decades?

What distinguishes positive economic analysis from normative economic analysis?

Which of the following scenarios addresses the distribution of goods within an economy?

Which of the following is a characteristic of a centrally planned economy?

What manufacturing choice might an economy make to enhance future production?

Why is it important to understand the mechanisms of economic problem-solving?

Which option represents a trade-off in production choices?

What impact do different economic mechanisms have on resource allocation?

Which economy is cited as the closest example of a centrally planned economy during the twentieth century?

What is the primary role of the government in a centrally planned economy?

What does the term opportunity cost refer to?

Why might a government decide to produce a good or service in a centrally planned economy?

What is one potential outcome of government intervention in the economy?

Which of the following best describes the nature of decision-making in a centrally planned economy?

What might happen if individuals in an economy do not produce enough of a critical good?

How does opportunity cost differ in individual versus societal contexts?

What is a central problem faced by economies regarding production choices?

What does the production possibility frontier represent?

What does a point lying strictly below the production possibility frontier indicate?

Which of the following statements best describes opportunity cost?

If an economy chooses to produce more corn, what happens to cotton production?

What does it mean when an economy has fully utilized resources?

Which factor affects the shape of the production possibility frontier?

Why is there always a cost associated with producing more of one good?

What does a movement along the production possibility frontier indicate?

What is the primary focus of macroeconomics?

Which chapter focuses on consumer behavior?

In the context of economics, what does opportunity cost refer to?

How is a centrally planned economy distinct from a market economy?

What is the subject matter of microeconomics primarily concerned with?

What does positive economic analysis aim to achieve?

Which of the following terms is NOT associated with microeconomics?

What analysis involves making judgments about economic efficiency and inequalities?