Economics Unit 1 Review

What is the difference between a shortage and scarcity?

• A shortage is temporary but scarcity always exists

• A shortage results from rising prices; scarcity results from falling prices

• A shortage is lack of all goods and services; scarcity concerns a single item

• There is no real difference between a shortage and scarcity

Economics is the study of how people seek to satisfy their needs and wants by making choices.

• True

• False

Individuals who come up with a new idea for a good or service, then they make it a reality

• resource

• human resources

• consumer

• entrepreneur

The idea that resources are limited; we don't have an unlimited supply of what we want

• scarcity

• supply

• demand

• inflation

Which of the following is a need?

• Ice cream

• Houses

• Basketballs

• Candy!!! (I want candy)

What is the fundamental problem of every society?

• labor costs

• scarcity

• economic interdependence

• market fluctuation

What are the 3 economic questions?

• What to produce? How To Produce? For whom to produce?

• Who to produce? Why you produce? Like to produce?

• Why to produce? Tell who to produce? Things to produce?

• What to produce? How to produce? When to produce?

Economics is...

• studying goods, services, and how people can get them.

• studying trees, bushes, and other plants.

• studying animals and wildlife.

• studying food, and how food is made.

The study of economics is primarily concerned with:

• demonstrating that capitalistic economies are superior to socialistic economies.

• determining the most equitable distribution of society's output.

• keeping private businesses from losing money.

• choices/decisions that are made due to lack of resources

The Gross National Product (GNP) is

• I'm not sure Mr. Szymkowiak. I need to study this concept more!

• all of the goods and services produced annually in a nation OR the market value of goods and services by all citizens of a country- both domestically and abroad

• a type of food

• the measure of total quality of economic life in a nation in 1 year