Basic Economic Concepts

Why does scarcity exist?

• Wealthy private business owners keep all of the money for themselves.

• Governments control all the resources in society.

• There are unlimited needs and wants but limited resources from which to satisfy them.

• There are limited needs and wants but unlimited resources to satisfy them.

What does scarcity force societies to have to do?

• Make choices

• Make money

• Lose resources

• Have winners and losers.

Food, water, shelter, and entertainment are all considered economic needs.

• True

• False

Which one of the following is considered an economic want?

• Food & Water
• Clothing
• Shelter
• Transportation

A good that lasts three years or more when used on a regular basis is called a

• Capital Good
• Consumable Good
• Nondurable Good
• Durable Good

Which of the following is considered a nondurable good?

• John Deere Tractor
• Lincoln Welding Torch
• Blow dryer
• toilet paper

Which of the following could be considered both a durable good and consumer good?

• Automobile
• condoms
• dental floss
• a loaf of bread

The cotton gin revolutionized the cotton industry by making the production of cotton a lot more.....

• efficient
• underutilized
• inefficient
• faster

When Eli Whitney created the cotton gin, he made improvements in which of the following factors of production?

• Entrepreneurship
• Capital Goods
• Human Capital
• Land

What are the four factors of production? 

• Land, Labor, Consumer, Owner
• Entreprenuer, Office, Materials, Labor
• Human Capital, Labor, Entrepreneur, Land
• Land, Labor, Capital, Entrepreneur