HSHS 8ECON - 5. Overview of Key Concepts

Which word is best defined as "the study of how we manage (by making choices) our resources to satisfy the economic problem (scarcity)"?

• scarcity

• business

• economics

• needs and wants

What do we call the problem that we have unlimited needs and wants but limited resources?

• opportunity cost

• scarcity

• greed

• economics

Australia exports iron ores and imports a lot of machinery. What would this be known as?

• scarcity

• taxation

• buying and selling

• trade

Firms rely on households for labour. Households rely on firms for income. What is this kind of relationship called?

• independence

• circular matrix

• interdependence

• economic problem

"The way we distribute our scarce resources among producers. It also refers to the way we then distribute scarce goods or services among consumers is called...."?

• economic performance

• specialisation

• trade

• allocation of markets

Which of these can be used to measure how well a country's economy is doing?

• Gross National Product (GDP)

• inflation

• unemployment levels

• all of the above

Stronger economic performance usually leads to higher living standards.

• true

• false

Which of these is an example of an individual need?

• iphone

• shelter

• electricity

• brand new Nike shoes

A society has collective wants. Things that generally everybody can use. Who usually supplies these collective wants?

• businesses

• individual people

• the government

• entrepreneurs

What important economic concept does this show?

• trade

• making choices

• specialisation

• needs