ECON 201 Midterm Exam | American Military University

ECON 201 Midterm Exam

Question 1

Economics is the study of:

Question options:


increasing the level of productive resources so there is maximum output in society.


increasing the level of productive resources so there is a minimum level of income.


how people, institutions, and society make choices under conditions of scarcity.


the efficient use of scarce resources paid for at the minimum level of cost to consumers and businesses.

Question
points
2

Which of the following is not a central focus of the "economic perspective"?

Question options:


Scarcity and choice.


The scientific method.


Purposeful behavior.


Marginal analysis.

Question
points
3

The satisfaction or pleasure one gets from consuming a good or service is:

, Question options:


price.


utility.


consumption.


preferences.

Question
points
4

The private ownership of property resources and use of prices to direct and coordinate economic activity
is characteristic of:

Question options:


a command system.


a market system.


communism.


socialism.

Question
points
5

Which statement best describes a capitalist economy?

Question options:

The production of goods and services is determined primarily by markets, but the allocation of goods and se
government.

The production of goods and services is determined primarily by government, but the allocation of goods a
primarily by markets.


The production and allocation of goods and services is determined primarily through markets.