8 Economics - Week 1

Economics is...

• how a society chooses to use its resources to produce goods and services to satisfy needs & wants

• how consumers spend their money

• how producers sell goods and services

• how governments spend money and sell resources

A good is...

• an action that a person does for someone else e.g. haircuts, medical check-ups, mail delivery, car repair, and teaching.

• an object people want that they can touch or hold e.g. food, clothing, toys, furniture, and toothpaste.

A market is 

• any organised exchange of goods and services for money
• where you buy groceries
• stalls of food on weekends 

The amount of goods available

• Demand
• Goods
• Supply
• Services

Occurs because we have unlimited wants but only a limited amount of resources. This requires us to make choices.  

• Resources
• Opportunity cost
• Economic Problem
• Consumer Rights

Is the physical and mental effort that people contribute to the production of goods and services

• Labour
• Resources
• Capital
• Hard Work

The economic problem occurs when we have 

• Unlimited wants and limited resources
• Unlimited resources and limited wants
• Unlimited wants and unlimited resources
• Limited wants and limited resources

Opportunity Cost is best defined as

• The real cost of the next best alternative that is given up due to the choice you made 
• The cost of purchasing something 
• The benefit you gain by making a decision 
• The amount of debt you take on by making a decision 

Which of the following provides a service rather than a good?

• Clothing boutique 
• Grocery store
• Ice cream shop
• Medical office 

Movies and popcorn are an example of 

• Competitive wants
• Complementary wants
• Unlimited wants
• Consumption