1 Scarcity

Multiple Choice

What is scarcity in economic terms?

• The abundance of resources to meet human needs

• The fundamental economic problem facing all societies resulting from a combination of scarce resources and people's virtually unlimited needs and wants

• The study of how wealth is distributed in society

• A situation where resources are plentiful and needs are limited

Multiple Choice

What is a need according to the image?

• Something we would like to have but is not necessary for survival

• A tangible economic product that is useful

• A basic requirement for survival, including food, clothing, and shelter

• An economic product that is not transferable to others

Multiple Choice

What are the two groups into which products fall?

• Needs and Wants

• Services and Requirements

• Goods and Services

• Tangible and Intangible

Multiple Choice

What is a durable good?

• An item that wears out within a year of regular use.

• A service that lasts for at least 3 years.

• A good that lasts for at least 3 years when used regularly.

• A consumable product that is used up quickly.

Multiple Choice

Which of the following is an example of a nondurable good?

• A washing machine

• A car

• Writing paper

• A tractor

Multiple Choice

What is an example of a good?

• House

• Book

• Happiness

• Education

Multiple Choice

What are consumer goods?

• Goods produced by consumers for personal use

• Goods intended for final use by businesses

• Goods intended for final use by consumers rather than a business

• Services provided by businesses to consumers

Multiple Choice

What is a capital good?

• A financial investment in stocks or bonds

• A tool, equipment, or other manufactured good used to produce other goods and services

• A professional service offered by a financial advisor

• A type of currency used in capital cities

Multiple Choice

Which of the following is an example of a service?

• A smartphone

• A haircut

• A car

• A refrigerator

Multiple Choice

According to the Paradox of Value, what is required for an item to have value?

• Scarcity

• Utility

• Popularity

• Complexity

Multiple Choice

Which of the following examples illustrates the Paradox of Value?

• A diamond has a very low monetary value, but water has a high value

• Both diamonds and water have high monetary value

• Water has a very low monetary value, but diamonds have a high value

• Both diamonds and water have low monetary value

Multiple Choice

Which of the following is considered a part of a nation's wealth?

• Stock market investments

• Intellectual property like patents

• Natural resources, factories, stores, houses, motels, theaters

• Professional services like consulting

Multiple Choice

What does the concept "There is no such thing as a free lunch" (TINSTAAFL) imply?

• Lunch is always expensive.

• Everything in life comes without a cost.

• There are hidden costs associated with things that appear to be free.

• Businesses do not use resources when they offer something for free.

Multiple Choice

What is one of the purposes of analyzing economic activity in economics?

• To determine the best political party

• To understand why the prices of some items are higher than others

• To predict weather patterns

• To study historical events