AMU ECON 201 Week 4 Midterm Exam Study Guide on Scarcity
and Choice | Questions and Answers with Complete Solutions
100% Correct | 2025-2026 Update
Question 1 points
Economics is the study of:
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 2 points
Which of the following is not a central focus of the "economic perspective"?
Scarcity and choice.
The scientific method.
Purposeful behavior.
Marginal analysis.
Question 3 points
The satisfaction or pleasure one gets from consuming a good or service is:
price.
utility.
consumption.
preferences.
Question 4 points
The private ownership of property resources and use of prices to direct and coordinate economic activity is
characteristic of: a command system.
, a market system.
communism.
socialism.
Question 5 points
Which statement best describes a capitalist economy?
The production of goods and services is determined primarily by markets, but the allocation of goods and
services is determined primarily by government.
The production of goods and services is determined primarily by government, but the allocation of goods and
services is determined primarily by markets.
The production and allocation of goods and services is determined primarily through markets.
The production and allocation of goods and services is determined primarily through government.
Question 6 points
Capitalism is an economic system that:
produces more capital goods than consumer goods. produces more
consumer goods than capital goods. gives the government the right to
tax individuals and corporations.
private individuals and corporations the right to own productive resources.
Question 7 points
In a market system, well-defined property rights are important because they:
reduce unnecessary investment. limit
destructive economic growth. create
economic problems.
encourage economic activity.
Question 8 points
If two goods are complements:
they are consumed independently.
an increase in the price of one will increase the demand for the other.
and Choice | Questions and Answers with Complete Solutions
100% Correct | 2025-2026 Update
Question 1 points
Economics is the study of:
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 2 points
Which of the following is not a central focus of the "economic perspective"?
Scarcity and choice.
The scientific method.
Purposeful behavior.
Marginal analysis.
Question 3 points
The satisfaction or pleasure one gets from consuming a good or service is:
price.
utility.
consumption.
preferences.
Question 4 points
The private ownership of property resources and use of prices to direct and coordinate economic activity is
characteristic of: a command system.
, a market system.
communism.
socialism.
Question 5 points
Which statement best describes a capitalist economy?
The production of goods and services is determined primarily by markets, but the allocation of goods and
services is determined primarily by government.
The production of goods and services is determined primarily by government, but the allocation of goods and
services is determined primarily by markets.
The production and allocation of goods and services is determined primarily through markets.
The production and allocation of goods and services is determined primarily through government.
Question 6 points
Capitalism is an economic system that:
produces more capital goods than consumer goods. produces more
consumer goods than capital goods. gives the government the right to
tax individuals and corporations.
private individuals and corporations the right to own productive resources.
Question 7 points
In a market system, well-defined property rights are important because they:
reduce unnecessary investment. limit
destructive economic growth. create
economic problems.
encourage economic activity.
Question 8 points
If two goods are complements:
they are consumed independently.
an increase in the price of one will increase the demand for the other.
