Economics - Unit 2 Assessment

Scarcity, choice, and opportunity costs are key concepts in the study of economics.

• True

• False

Man's needs and wants, from basic necessities to luxuries, are innumerable.

• True

• False

A person who buys goods and services.

• consumer

• resource

• entrepreneur

• currency

Something we pay for that we can touch.

• goods

• services

Something we use from nature.

• human resource

• capital resource

• natural resource

• entrepreneur

Example of a want?

• ice cream

• healthy food

• water

• clear air

Which one is an example of goods?

• a nurse

• a firefighter

• a teacher

• a shoes

Economics is a discipline of social science that deals with how man allocates scarce resources to produce goods and services and distribute them efficiently to individuals, according to their effort.

• True

• False

What is a price ceiling?

• the lowest legal price – creates a surplus

• the highest legal price – creates a shortage

• The lowest customers are willing to pay for a product.

• The highest price customers are willing to pay for a product.

What does it mean when there is a shortage?

• there is more demand than supply

• there is more supply than demand

• Our supply of natural resources is finite.

• Spending all of your money on that new iPhone and not having enough left over to get groceries.