Basics of Economics

Economics is the study of how people seek to satisfy their needs and wants by making choices.

• True
• False

The definition of Scarcity is...

• An unlimited amount of resources to meet limited wants and needs
• A limited amount of resources to meet unlimited wants and needs.
• When people use time and energy to create events
• a city where individuals commit themselves to unlimited wants and needs

What is a need?

• Nothing
• Something you have to have to live
• Something you would like to have
• Ice cream

Which of these is NOT an example of a need?

• Water
• Food
• watch
• Shelter

Which of the following in an example of LAND.

• Coal
• Office Building

What is the fundamental problem of economics? 

• How to keep consumers out of debt?
• How to fulfill our unlimited wants and needs with limited resources?
• How to figure out the way to make the most money?
• How do we ensure all people get a college education?

things purchased by consumers

• goods

• consumer

• producer

• supply

A person who purchases a good or service

• consumer

• taxes

• supply

• good

The resources required to make a product (good or service)

• economics
• consumption
• four factors of production
• scarcity

What is opportunity cost?

• the value of the next best option that is not selected when a choice is made.

• there is not enough of it.

• things people make to earn money.

• actions people do to earn money.