Activity

Microeconomics

Scare Resources

Q1. In a world of scarcity, it is impossible to

A. Satisfy all basic human needs
B. Meet all of societies wants
C. Find more resources to satisfy more human wants.

Q2. The scarce resources that we value are:

List any 3.

Q3. Are you the lucky student who is taking every class you wanted with your first-choice
professor during the perfect time and at the ideal location? The odds are that you have
probably had to make trade-offs on account of scarcity. There is a limited number of time
slots each day for classes and only so many faculties available to teach them. Every faculty
member can’t be assigned to every time slot. Only one class can be assigned to each
classroom at a given time. This means that each student has to make trade-offs between the
time slot, the instructor, and the class location.
What is the scarce resource mentioned above?

Q4. The creation of choice is done by

A) Scarcity of resources
B) Less choice option
C) The urgency of needs
D) Abundance of resources

Unlimited wants

Q1. People are forced to make choices because of:

A. unlimited wants and unlimited resources.
B. limited wants and unlimited resources.
C. unlimited wants and limited resources.
D. limited wants and limited resources.

Q2. Human wants are:

a) Always fixed
b) Limited
c) Unlimited
d) Likely to decrease over time

Q3. Mention any examples of unlimited wants from daily life.

Positive and Normative

Q1. Which of the following is a normative statement in economics?

A) More spending by the government will reduce poverty
B) Higher taxes will lead to less desire to work
C) The UK economy is growing fast relative to other European Union members
D) The government should concentrate on reducing unemployment

Q2. Positive economics is the focus on facts and cause-and-effect behavioural relationships
and includes the development and testing of economic theories.
True
False

Q3.What is positive statement?

Q4.What is normative statement?