BASIC CONCEPTS OF ECONOMICS

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Human wants are unlimited because __________

• Production is inadequate

• Resources have alternative uses

• New wants always arise

• Resources are limited

Opportunity cost is a term that describes _______

• The initial cost of setting up a business

• Cost of one product in terms of foregone production of others

• The monetary equivalent of the utility of a commodity

• Costs related to an optimum level of production

The real cost of a commodity purchased is _______

• Its market price

• The value the a commodity

• The distance covered to the market

• The cost of an alternative that has been sacrificed

Scarcity in economics means that resources _______

• Need to satisfy human wants are limited

• Are not enough to share among the producers of goods and services

• Can be managed if those who use them behave rationally

• Are never enough to share the amount the consumer

Choice is necessary because resources _______

• Are available

• Can be found every where

• Are scarce

• Are unlimited

   Economic activities are undertaken to solve the problem of ________

• Consumption

• Opportunity cost

• Production

• Scarcity

  Mr Idowu wanted to buy a television and a refrigerator. Each cost N500, 00, the exact amount he has. If he buys the television, the refrigerator would be regarded as

• Marginal cost

• Inferior item

• Opportunity cost

• Supplementary

Scarcity in Economics generally refers to _______

• Resources being limited

• A period of production

• Monopolization of existing supply of resources

• A period of famine

Economists speak about opportunity cost’ when a consumer _______

•   Has a chance to minimize costs

• Has to forgo one thing in order to have another

• Can equate his fixed costs with his variable costs

• Is able to save part of his income