Exploring Economics Exam

Front

What is scarcity?

Back

Not having enough resources to satisfy all wants and needs

Front

What does supply refer to in economics?

Back

The amount of goods or services producers are willing to sell

Front

How does demand affect prices?

Back

Prices increase as demand increases.

Front

What is an incentive?

Back

A benefit that motivates people to act.

Front

What is inflation?

Back

An increase in the overall price level of goods and services

Front

What is opportunity cost?

Back

The value of the next best alternative given up

Front

Which of the following is a need? A smartphone, A vacation, Food and water, Designer clothes

Back

Food and water

Front

Which is an example of a want? Options: Shelter, Medicine, A new video game, Clean air

Back

A new video game

Front

What is the study of economics about?

Back

It analyzes how resources are used to meet needs and wants

Front

How do supply and demand work together?

Back

They determine the price of goods and services