Page 1 of 123
Workbook for Microeconomics Made Simple
Exercises and Solutions 2026.
Q1. The word "economy" comes from the Greek word oikonomos,
which means:
A) Environment
B) Production
C) One who manages a household
D) One who makes decisions
Answer: C | Rationale: Oikonomos combines oikos (house)
and nomos (management). This origin reflects the study of how
societies manage scarce resources.
Q2. The study of economics arises due to:
A) Money
B) Greed
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C) Scarcity
D) Poverty
Answer: C | Rationale: Scarcity exists because human wants
exceed available resources. Economics is the study of how society
manages this scarcity.
Q3. (Scenario) The Scarcity Dilemma: A local free health clinic
faces a 3-month wait time for basic dental care. Unlimited care
cannot be provided because:
A) The government restricts health care.
B) Resources like time, dentists, and equipment are limited.
C) People do not value their health.
D) Only wealthy people should get care.
Answer: B | Rationale: Scarcity applies to all resources,
including medical professionals, time, and equipment. Even free
services face rationing through wait times.
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Q4. Which of the following is not a resource as the term is used
by economists?
A) Land
B) Capital
C) Money
D) Entrepreneurship
Answer: C | Rationale: Land, labor, capital, and
entrepreneurship are the four factors of production. Money is a
medium of exchange, not a productive resource itself.
Q5. Approximately what percentage of the world's economies
experience scarcity?
A) 10%
B) 40%
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C) 85%
D) 100%
Answer: D | Rationale: Scarcity is a universal condition. Even
the wealthiest economies face scarcity because wants are
unlimited relative to available resources.
Q6. Microeconomics is the branch of economics that studies:
A) The behavior of individual households and firms
B) Economy-wide phenomena like inflation
C) International trade policies
D) Monetary policy
Answer: A | Rationale: Microeconomics focuses on individual
economic units: consumers, workers, investors, and firms.
Workbook for Microeconomics Made Simple
Exercises and Solutions 2026.
Q1. The word "economy" comes from the Greek word oikonomos,
which means:
A) Environment
B) Production
C) One who manages a household
D) One who makes decisions
Answer: C | Rationale: Oikonomos combines oikos (house)
and nomos (management). This origin reflects the study of how
societies manage scarce resources.
Q2. The study of economics arises due to:
A) Money
B) Greed
,Page 2 of 123
C) Scarcity
D) Poverty
Answer: C | Rationale: Scarcity exists because human wants
exceed available resources. Economics is the study of how society
manages this scarcity.
Q3. (Scenario) The Scarcity Dilemma: A local free health clinic
faces a 3-month wait time for basic dental care. Unlimited care
cannot be provided because:
A) The government restricts health care.
B) Resources like time, dentists, and equipment are limited.
C) People do not value their health.
D) Only wealthy people should get care.
Answer: B | Rationale: Scarcity applies to all resources,
including medical professionals, time, and equipment. Even free
services face rationing through wait times.
,Page 3 of 123
Q4. Which of the following is not a resource as the term is used
by economists?
A) Land
B) Capital
C) Money
D) Entrepreneurship
Answer: C | Rationale: Land, labor, capital, and
entrepreneurship are the four factors of production. Money is a
medium of exchange, not a productive resource itself.
Q5. Approximately what percentage of the world's economies
experience scarcity?
A) 10%
B) 40%
, Page 4 of 123
C) 85%
D) 100%
Answer: D | Rationale: Scarcity is a universal condition. Even
the wealthiest economies face scarcity because wants are
unlimited relative to available resources.
Q6. Microeconomics is the branch of economics that studies:
A) The behavior of individual households and firms
B) Economy-wide phenomena like inflation
C) International trade policies
D) Monetary policy
Answer: A | Rationale: Microeconomics focuses on individual
economic units: consumers, workers, investors, and firms.
