2023 Econ U1 KTerms

What is NOT an example of a need?

• Water

• Food

• Car

• House

Scarcity is BEST defined as...

• A temporary lack of something.

• The idea that all resources are finite.

• Being scared of something... BOO!

• A city that is scared.

• Unlimited resources.

Of the following, which is NOT a want?

• Cell phone

• Car

• House

• Education

Economics is...

• the study of making choices.

• resources are limited and scarce.

• the study of choosing how to satisfy our needs and wants.

• All of the above.

Goods can be...

• any tangible object one can buy and take home.

• groceries one buys at a supermarket.

• clothes you buy.

• All of the above.

The four resources in economics are...

• land, labor, capital, and entrepreneurship.

• land, labor, resources, and entrepreneurship.

• machines, labor, capital, and entrepreneurship.

• sector, labor, capital, and entrepreneurship.

The Production Possibility Graph displays the concept of

• scarcity.

• opportunity cost.

• leverage.

• profit.

The circular flow model shows how

• business firms make profits.

• resources and money are exchanged.

• sectors are economically interdependent.

• All of the above.

Shortage and scarcity are synonyms.

• True.

• False.

Goods are actions that one pays for.

• True.

• False.