Complete the statement

____ 1. The main idea of this chapter is that

a. human wants are limited

b. resources are unlimited

c. individuals must make choices as they use their scarce resources.

d. only undeveloped countries face the problem of scarcity.

____ 2. When economists speak of the need to economize, they are taking about

a. saving.

b. getting the most from what you have

c. studying economics

d. spending as little as possible.

____ 3. Scarcity is a condition that

a. exists only in poor countries.

b. only poor individuals experience.

c. all individuals and societies face.

d. rich people never experience.

____ 4. Which of the following would be a good in the economic sense?

a. a haircut.

b. a pair of scissors.

c. a visit to a doctor.

d. advice from a lawyer.

____ 5. Labour, to the economists, is

a. organizing a business and managing the operation.

b. anything generally accepted in exchange for property, goods or services.

c. the physical and mental effort needed to produce goods and services.

d. owned, with the other factors of production, by the company using it.

Ex. 19. Complete the following sentences using the information from the text.

1. Everyone goes through life …

2. Neither individual, nor societies …

3. Scarcity is imbalance between …

4. Human wants are unlimited but …

5. Although there are a lot of goods on sale …

6. Printing more money does not …

7. All choices involve …