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Economics
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Unit 1 Sample Test (PPC) TRUE-FALSE QUESTIONS Circle the T if the statement is true; the F if it is false. 1. The conflict between the scarce material wants of society and its unlimited economic resources gives rise to the economizing problem. T F 2. Money is a resource and is classified as "capital." T F 3. Profit is the reward paid to those who provide the economy with capital. T F 4. Resources are scarce because society's material wants are unlimited and productive resources are limited. T F 5. Economic efficiency requires that there be both full employment of resources and full production. T F 6. Allocative efficiency means that goods and services are being produced by society in the least-costly way. T F

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