Quiz Essay

Words: 1099
Pages: 5

1.Economics is best defined as the study of A) financial decision-making.B) how consumers make purchasing decisions.C) choices made by people faced with scarcity.D) inflation, unemployment, and economic growth.Points Earned: 0.4/0.4Correct Answer(s): C
2.Scarcity can best be defined as a situation in whichA) there are no buyers willing to purchase what sellers have produced.B) there are not enough goods to satisfy all of the buyers' demand.C) the resources we use to produce goods and services are limited.D) there is more than enough money to satisfy consumers' wants.Points Earned: 0.4/0.4Correct Answer(s): C
3.An arrangement that allows buyers and sellers to exchange things is calledA) a contract.B) a market.C) money.D) efficient.Points
…show more content…
Factoriescontinue to expand as China’s economy grows, but the number of uneducated workers is declining and the population of young people is leveling off. Add to these an increased number of people remaining inland,and this leaves coastal regions which specialize in factory production and exports with a large number of job openings.The labor shortages are resulting in wage increases, pushing up costs on Chinese-madeproducts. This could make China less competitive in global markets. Anticipating a continuation of risingcosts for Chinese manufacturing, international manufacturers are already looking at moving factories tocountries with lower costs.The increase in wages is also fueling a growing Chinese middle class. Minimumwages in big cities have grown roughly 25% over the past three years, and infrastructure, housing and retailprojects have started to develop in more rural areas. The number of people going to college has alsoincreased significantly. In 2005, over 14 million