Methods & Tools of economists Q.2

Question 1

In terms of wants and needs, human ______ are limitless.

Answer 1

wants

Question 2

Economic rivalry among sellers for the consumers’ dollars is called:

Answer 2

competition

Question 3

The amount of a bank’s reserves determines how much it can lend.

Answer 3

true

Question 4

reason that businesspeople use their resources efficiently in production

Answer 4

profit

Question 5

individuals, businesses, and different regions produce certain products

Answer 5

specialization

Question 6

people whose wants are being satisfied

Answer 6

consumers

Question 7

another name for a businessperson

Answer 7

entrepreneur

Question 8

what determines how much is produced

Answer 8

demand

Question 9

man-made resources used in production

Answer 9

capital goods

Question 10

available resources used for production

Answer 10

factors of production

Question 11

people in society who are producers

Answer 11

human resources

Question 12

one person does a small portion of work on a larger project

Answer 12

division of labor

Question 13

materials found in nature which man puts to his use

Answer 13

natural resources

Question 14

Minerals, trees, and animals are examples of:

Answer 14

natural resources

Question 15

Factories, buildings, and trucks are examples of:

Answer 15

capital goods

Question 16

Welders, assembly line workers, construction workers and teachers are all examples of:

Answer 16

human resources

Question 17

Specialization makes regions more:

Answer 17

interdependent

Question 18

When the demand for a product is greater than the supply, prices and profits:

Answer 18

rise

Question 19

In a capitalist system, the people that determine how much to produce are:

Answer 19

consumers

Question 20

Investment means spending on:

Answer 20

capital goods

Question 21

In its tax collecting role, the government collects taxes in order to specifically spend the money on _____________________.

Answer 21

public goods and services

Question 22

If competition is keen and prices are lowered, this market is called a:

Answer 22

consumer’s market

Question 23

If consumers’ wants are poorly satisfied and businesses are making large profits, this condition is a:

Answer 23

producer’s market

Question 24

The development that has not taught us how to use natural resources wisely is the:

Answer 24

development of market mechanism

Question 25

What are the functions of money?

Answer 25

A measure of value
A store of value
A medium of exchange

Question 26

What are the three major roles that government plays in our economy?

Answer 26

regulatory, collects taxes, balances total supply and demand