Economics Chapter 1

What is the study of the choices individuals and societies make in production, distribution, and consumption of goods?

• Supply

• Economics

• Market

• Services

What is the quantity of a good for sale at a certain price under certain conditions?

• Goods

• Market

• Demand

• Supply

What is the mechanism that allows people to exchange goods?

• Market

• Supply

• Demand

• Economics

Who was the founder of the Austrian school of economics?

• Karl Marx

• Adam Smith

• Carl Menger

• Russell Kirk

What type of good is a forklift that is used in business?

• imported

• capital

• consumer

• service

What type of good is a computer that is used for personal home use?

• capital

• imported

• specialized

• consumer

A good is a tangible item for which people will pay.

• True

• False

A service is a tangible item for which people will pay.

• True

• False

A need is something that is difficult to live without.

• True

• False

A want is the human desire to have and use a certain good. In economics, it is the desire for material things or services that people are willing to pay for.

• True

• False