What Is Economics?

What is the fundamental problem of economics?

• labor

• capital

• utility

• scarcity

You hire someone to cut your lawn.

• Good
• Service

You pay your sister $5 to clean your messy bedroom.

• Good
• Service

You take an airplane when you go on a trip.

• Good
• Service

Your brother sells you his old baseball mitt. 

• Good
• Service

A limited supply of goods and services

• Consumption

• Scarcity

• Production

• Distribution

You buy an ice cream cone from an ice cream truck.

• Good
• Service

You visit the doctor for a checkup.

• Good
• Service

What is the movement of good and services directly to or near the consumers who will purchase them?

• Production

• Consumption

• Distribution

• Utility

Which is NOT one of the three basic economic questions?

• What to Produce

• When to Produce

• How to Produce

• For Whom to Produce