Multiple-Choice Questions

Click on the answer you think is correct.

1. Conventional economics is based on the assumption that
   a) human wants are limited to necessities
   b) the means by which wants can be satisfied are limited
   c) resources have specific uses, which means that they can be used only to produce specific goods
   d) the economic problem arises because of a shortage of money

2. In economics the term land refers exclusively to
   a) agricultural land or land suitable for building on
   b) produced goods for use in further production
   c) all natural resources which occur in nature, including minerals and water supplies
   d) the territory claimed by a national government.

3. The supply of labor in an economy will be affected by
   a) The size of the population.
   b) The participation rate
   c) Customary and legal arrangements affecting the working day, week, year, etc.
   d) All of the above.

4. In economics the short run is a period of time which is
   a) not long enough for the supply of all factor inputs to be increased
   b) about one or two months
   c) long enough to permit any changes in factor supplies which are possible to be brought about
   d) irrelevant because economics is only concerned with the long run

5. If an economy were operating at a point inside its production possibilities frontier (or boundary)
   a) it would be maximizing its total production of goods and services
   b) it would be producing beyond its productive capacity
   c) it would be wasting available resources
   d) it would need to obtain additional supplies of productive inputs

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