A. Multiple Choice

1. a
2. c
3. e
4. c
5. a
6. b
7. d
8. d
9. b
10. a

        B. Essays

1. State and explain the reasons behind the scarcity of resource and good / service.  
2. In your own word, explain what scarcity is.
3. Explain resource allocation using the PPF curve.
4. Explain how to make choices rationally. 
5. What are the different kinds of human needs? Please explain!
6. Explain about the fundamental economic problems are! 
7. Compare between mixed economic system and contralized economic system!
8. What are advantageous and disadvantageous of centralized economic system? Please explain!
9. In your opinion, does traditional economic system still exist in the world? Elaborate!
10. In your opinion, what economic system is adopted in Indonesia? Elaborate!                                                                                                                                                                                                     Answer

1.  -Natural disasters, like tsunami, earthquake, and flood, destroy the resources, so that they cannot be 
       utilized.

     -Wars also one of the main reasons behind scarcity.Civil War in Sudan, for instance, has caused famine
       and starvation

     -Human behaviour toward natural resources also has impact on resource scarceness, which in turn can
       cause scarcity of goods and services.Illegal logging is one of the examples.

     -The various arrays of needs.Human needs are continuously developed.It is a human nature, that  we,
        human, always feel insufficient.
2.  Scarcity is a situation where existing resources or in any public offer to all its citizens but still less than or
     not comparable to what they want.

3. Production possibility curve is a curve that describes the various combinations of output that may be       produced by an economy with production factors (resources) are available.

4.  a. identify whether that will be fulfilled is the need or desire.

     b. identify drivers to meet demand.

     c. do the costs and benefits in meeting needs.

     d. realizing the opportunity cost that if a need is filled with opportunity cost of other needs unmet

5. - Needs according to the intensity of their usefulness
    - Needs according to the form and nature
    - Needs according to the time
    - Needs according to the subject that requires

6.   principal economic problem is the main problem faced by every economy. basically the main economic 
      problem is almost identical in every economy is the principal economic problems are as follows:

      1. what should be produced?

      2. how to produce it?

      3. to whom the goods or services produced?

7. Mixed economic system is an economic system that is controlled and supervised by the government but the
    society still had ample freedom to determine the economic activities that wish to run while the centralized 
    economic system is an economic system is telaksana under central command authority or central 
    government.