Economics Unit 1 Review

What is the study of scarcity and choice?

• Economics

• Microeconomics

• Macroeconomics

• Socioeconomics

Scarcity forces us all to make choices by making us decide which options are most important to us.

• True

• False

Goods and services are scarce because the resources used to produce them are scarce.

• True

• False

What is any human-made resource that is used to produce other goods and services?

• Land

• Labor

• Capital

What are the resources that make all goods and services?

• Labor

• Entrepreneurs

• Land

• Factors of Production

• Capital

What occurs when consumers want more of a good or service than producers are willing to make available at a particular price?

• Scarcity

• Shortage

What is something essential for survival?

• Need

• Want

What is something that we desire that is not necessary for survival?

• Need

• Want

What are physical objects that someone produces?

• Services

• Goods

What are actions or activities that one person performs for another?

• Services

• Goods