Economics is the study of how society manages its

  1. Economics is the study of how society manages its

a. limited wants and unlimited resources.

b. unlimited wants and unlimited resources.

c. limited wants and limited resources.

d. unlimited wants and limited resources.

  1. The terms equality and efficiency are similar in that they both refer to benefits to society. However they are different in that

a. equality refers to uniform distribution of those benefits and efficiency refers to maximizing benefits from scarce resources.

b. equality refers to maximizing benefits from scarce resources and efficiency refers to uniform distribution of those benefits.

c. equality refers to everyone facing identical tradeoffs and efficiency refers to the opportunity cost of the benefits.

d. equality refers to the opportunity cost of the benefits and efficiency refers to everyone facing identical tradeoffs.

  1. Senator Bright, who understands economic principles, is trying to convince workers in her district that trade with other countries is beneficial. Senator Bright should argue that trade can be beneficial

a. only if it allows us to obtain things that we couldn’t make for ourselves.

b. because it allows specialization, which increases total output.

c. to us if we can gain and the others involved in the trade lose.

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