Economics Packet Quiz 1

TRUE or FALSE: We can have everything that we want because we have unlimited resources.

• TRUE

• FALSE

Which among the choices below creates an imbalance between resources and wants and needs?

• Making responsible decisions

• Doing things that you want to do

• Consulting other people before doing something

• Considering if something is really a need or just a want

Something we desire but that is not necessary for survival

• Want

• Need

• Good

• Service

Something essential for survival

• Want

• Need

• Good

• Service

Physical objects that someone produces

• Want

• Need

• Good

• Service

An action or activity that one person performs for another

• Want

• Need

• Good

• Service

The fact that there are limited amounts of goods and services to meet unlimited wants is called:

• Scarcity

• Shortage

• Surplus

• Economics

Because of scarcity, people are forced to make _________ about how to use resources.

• Choices

• Opportunities

• Houses

• Desires

When you make a choice, you often have to give up other options...those things are called the...

• Opportunity Cost

• Missed Opportunities

• Misused Resources

• Scarce Options

In economics a decision is free if:

• There is no money involved.

• There are no products involved.

• There is no exchange with another person.

• A decision is never free. There is usually an alternative which results in an opportunity cost. Not free.