Basic Economics Quiz

The definition of a need is: Something that is essential for life and ________ to __________.

• necessary, survive

• essential, life

• necessary, essential

• essential, survive

A want is: Something that makes life more happy and _________ but not _________ to survive.

• necessary, comfortable

• essential, necessary

• happy, comfortable

• comfortable, necessary

Which one of these items is a need and why?

• DVD's: to entertain you when you get bored

• a pool: to keep you cool and so you can relax

• a million dollars: so you can be rich and possibly famous

• a doctor: to provide medical help when needed

Which one of these items is a want and why?

• hand soap: you want clean hands

• carrots: you want nutrients in your diet

• cake: you want a dessert every now and then

• apartment: you want a place to live

What is the fundamental problem of economics? 

• How to keep consumers out of debt?
• How to fulfill our unlimited wants and needs with limited resources?
• How to figure out the way to make the most money?
• How do we ensure all people get a college education?

Who is considered the "father" of economics?

• Patrick Mahomes

• Alexander Graham Bell

• Karl Marx

• Adam Smith

Why do all societies have to make decisions about how resources will be used?

• People are greedy

• There are not enough resources for those who want them

• Resources are too expensive for most people

• Because there is a huge gap between the rich and poor

The definition of Scarcity is...

• An unlimited amount of resources to meet limited wants and needs
• A limited amount of resources to meet unlimited wants and needs.
• When people use time and energy to create events
• a city where individuals commit themselves to unlimited wants and needs

A person who purchases a good or service

• consumer

• taxes

• supply

• good

A person who provides a good or service

• producer

• need

• want

• consumer