Econ Unit 1

What is the basic problem that all societies face?

• Economics

• Scarcity

• Unlimited resources

• Money

Scarcity means that we have

• Unlimited wants/needs and unlimited resources

• Limited wants/needs and limited resources

• Unlimited wants/needs and limited resources

• Limited wants/needs and unlimited resources

Because of scarcity, we are forced to-

• Make breakfast

• Resort to cannibalism

• Sell our goods and services

• Make choices

When you make a choice, you are often choosing between two or more things. The next best thing after what you chose is-

• Opportunity cost

• A loss

• Shortage

• Surplus

What questions determine an economic system?

• Who, what, when, where, why

• Who is president, and what party is he?

• What is the GDP of the country?

• What to produce? How to produce it? Who receives the product?

In a command economy, who is in charge?

• The consumer

• The government

• The sellers

• The products

In a market economy, who is in charge?

• The government

• The products

• The consumers

• Those who provide services

If a product is tangible, that means it is a-

• Service

• Good

• Command

• Scarcity

If a product is an action performed by someone else for a fee, it is a

• Service

• Good

• Love

• Favor

Food, clothing, shelter, and oxygen are examples of

• Wants

• Luxuries

• Accessories

• Needs