Economics

The study of the production, distribution, and consumption of goods and services. (circulation of money)

• Economics

• Gross Domestic Product

• Public Policy

• Scarcity

What is the basic economic problem?

• Scarcity

• Wants

• Needs

• Resources

Wants are always....

• Unlimited

• Limited

• Both

• None of the above

Resources are always....

• Unlimited

• Limited

• Both

• None of the above

How does scarcity affect our economic choices?

• It allows the consumer to buy anything they want.

• It teaches us to spend our money wisely.

• It forces us to spend all of our money.

• All of the above

A person who starts and runs a business is called an....

• Entrepreneur

• Economists

• Elector

• Employee

The main goal in any business is to...

• Make a profit

• Break even

• To create a surplus of products and services in the economy.

• To create a shortage of products and services in the economy.

What situation may occur if the product/ service price is below the equilibrium price?

• Shortage

• Surplus

• Extremely low prices

• Opportunity costs

What situation may occur when a service/ product price is above the equilibrium price?

• Surplus

• Shortage

• Extremely high prices

• Opportunity cost

Occurs when a market sets a price. The demand for a product or a service is equal to the supply of the product or service. Both consumers and producers are satisfied, therefore, the price for the good or service is set.

• Equilibrium price

• Surplus

• Shortage

• All of the above