1. What is the � fundamental premise of economics�?

A) Natural resources will always be scare.
B) Individuals are capable of establishing goals and acting in a manner consistent with achievement of those goals.
C) Individuals choose the alternative for which they believe the net gains to be the greatest.
D) No matter what the circumstances, individual choice always involves a trade-off



2. The meaning of Greek word â??oikonomikusâ?? is _____

A) Wealth management
B) House management
C) Business management
D) Business economics



3. A capitalist economy uses ___ as the principal means of allocating resources.

A) Demand
B) Supply
C) Efficiency
D) Prices



4. â??Oikosâ??, which means-

A) House
B) Society
C) Government
D) All of above



5. Economics may be defined as the science that explains-

A) The choices that we make as we cope with scarcity
B) The decisions made by politicians
C) The decisions made by households
D) All human behavior