Economics Review

Tom decided to buy $200 worth of new clothes. Which of the following would be good reasons for the clothes being a need and not a want. (Pick 2)

• Tom needed to look more stylish. His other clothes were too ugly.

• Tom needed to fit in with his friends. All of his other friends wear the type of new clothes he bought.

• Tom needed to buy new clothes for his new job. His job has a certain dress code.

• Tom needed to wear name brand clothes. His other clothes were from stores that no one shops at anymore.

• Tom needed to buy new clothes because he lost all of his other clothes. Unfortunately, Tom’s house was flooded.

The definition of a need is: Something that is essential for life and ________ to __________.

• necessary, survive

• essential, life

• necessary, essential

• essential, survive

In order to stay out of debt, it is important to put your needs before your wants.

• True

• False

A want is: Something that makes life more happy and _________ but not _________ to survive.

• necessary, comfortable

• essential, necessary

• happy, comfortable

• comfortable, necessary

Which one of these items is a want and why?

• hand soap: you want clean hands

• carrots: you want nutrients in your diet

• cake: you want a dessert every now and then

• apartment: you want a place to live

Which one of these items is a need and why?

• DVD's: to entertain you when you get bored

• a pool: to keep you cool and so you can relax

• a million dollars: so you can be rich and possibly famous

• a doctor: to provide medical help when needed

What is a service?

• A job
• Something someone does for you
• A need
• Something you do for another person

What is a want?

• A person
• Something you would like to have but don't need to live
• Purple
• Something you need to live

What is a volunteer?

• Someone who works but doesn't get paid
• A person who is paid to work
• A pizza
• Yellow

What is a need?

• Nothing
• Something you have to have to live
• Something you would like to have
• Ice cream