What is Economics

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

If all resources are being used, what would have to be produced less of if more houses are built?

• Cars

• Candy

• Computers

• Cabinets

Which is NOT a question all societies have to answer due to scarce resources?

• When will products be produced?

• How will products be produced?

• What products will be produced?

• Who will gets access to the resources and the products they produce?

Which is NOT a scarce resource?

• Labor

• Trees

• Time

• Candy

Scarcity is defined as a limited supply of resources and...

• limited wants for those resources

• unlimited resources

• limited resources

• unlimited wants for available resources

Which two products use the same scarce natural resources?

• Gasoline and Electricity

• Gasoline and plastic

• Apples and glass

• Glass and gasoline

Why do we have to make production choices about available resources?

• Too many resources for the demand

• Limited wants

• Unlimited resources

• Scarcity

What are all societies forced to do because of scarcity?

• Make production decisions

• Conserve resources

• Limit resource use

• Charge large amount of money for available resources

Who is affected by the condition of scarcity?

• The rich

• Large economies

• All societies

• Producers (ie: businesses)

Goods and services have value because they

• are expensive

• use economic resources

• satisfy people’s wants and needs

• are sold for money