Unit 1 Introduction to Economics Test

A need is ____________.

• a physical object

• something that is necessary for survival

• an item we want

• an item we desire but that is not essential for survival

A want is _________________.

• a physical object

• something that is necessary for survival

• an item we want

• an item we desire but that is not essential for survival

According to economist a good is

• a physical object

• an item we need or want

• an item we desire but that is not essential for survival

• an action or activity that one person performs for another

According to economist service is _______________.

• a physical object

• something that is necessary for survival

• an item we desire but that is not essential for survival

• an action or activity that one person performs for someone else

Which of these examples is a service?

• Mr. Farr sells guitars.

• Mr. Swenson gives art supplies to consumers.

• Coach provides lessons for different sports.

• Ms. Miller writes books.

Economics is the study of how people make choices about ways to use _______________ resources to fulfill their unlimited wants and needs.

• Limited

• Unlimited

• Natural

• Man-made

Scarcity is known as the __________________.

• limited amount of resources to meet the unlimited wants

• unlimited amount of resources to meet the limited wants

• limited amount of resources to meet the limited wants

• unlimited amount of resources to meet the unlimited wants

Which of the following statements is true about scarcity?

• A. Scarcity is our inability to satisfy all of our wants.

• B. Scarcity problem arises because our wants are greater than resources available.

• C. The poor and the rich both face scarcity.

• D. All of the above.

WHAT ARE THE 4 FACTORS OF PRODUCTION?

• Land, Capital, Need & Want

• Land, Labor, Capital, Entrepreneurs

• Water, Air, Food & Shelter

• Land, Capital, Good & Service

WHAT IS LABOR?

• work people do for pay to produce good and services

• actions people do for other people

• any physical object

• The money people get for inheritance