Economics Test 1

The people who come to a market to buy goods and services.

• Producers

• Consumers

• Economist

• Entrepreneurs

What is scarcity? 

• Having too many resources 

• Not  having enough resources 

The fundamental economic problem is that

• resources are limited and wants are limited.

• resources are unlimited and wants are limited.

• resources are limited and wants are unlimited.

• resources are unlimited and wants are unlimited.

Something you must have to survive is an example of a

• want

• need

Work of labor performed for someone that includes haircuts, home repairs and forms of entertainment is called:

• good

• service

Wants

• desires for things that may or may not be necessities

• desires that can only be obtained by spending money

• are only tangible goods

• are only intangible goods

Economics 

• the study of how to meet unlimted, competing wants with limited resources

• the study of people and how they spend their money

• the study of how people need to budget their money

• the study of how to meet limited wants with limited resources

What is a need?

• Nothing

• Something you have to have to live

• Something you would like to have

• Ice cream

 The difference between a good and a service is that:

• Goods are available in unlimited quantaties and services are not 

• Goods can be carried home and services can not 

• Services are available in unlimited quantaties and goods are not 

• goods help satisfy unlimited wants and services do not

VOCABULARY: The condition that results from a society not having enough resources to produce everyone’s want.

• Scarcity

• Depreciation

• Merger

• Double Taxation