Chapter 1 Post Quiz
The Fundamentals of Economics

Matching Questions:

Match the terms on the left with the definition in the column on the right. Enter the lowercase letter of that definition in the box to the left of the question number.

	1. Economics	a. When limited resources are used most effectively.
	2. Scarcity	b. The author of The General Theory of Employment, Interest and Money
	3. Efficient	c. The study of the overall economy.
	4. Microeconomics	d. The study of how societies use scarce resources to produce commodities and distribute them among different people.
	5. Macroeconomics	e. The study of economic questions that can be answered by examining data and making observations.
	6. Adam Smith	f. Not enough to satisfy all the wants of society.
	7. How, what, and for whom	g. The study of the behavior of firms, individual markets, and households.
	8. Positive economics	h. Author of The Wealth of Nations.
	9. Normative economics	i. An economy that allows firms and individuals to decide the answers to the three fundamental questions of economic organization.
	10. John Maynard Keynes	j. The maximum amounts of production that can be obtained by an economy given technology and inputs to production.
	11. Market economy	k. The study of economic questions that can be answered through political debate and decisions.
	12. Command economy	l. The fundamental questions of economics.
	13. Land, labor, and capital	m. Value of the good or service foregone.
	14. Production-possibility frontier (PPF)	n. An economy in which government makes all the important economic decisions.
	15. Opportunity cost	o. The three broad categories of inputs to production.