Quiz #1: Fundamentals of 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

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

• limited wants for those resources

• unlimited resources

• limited resources

• unlimited wants for available resources

What is the condition that exists when Albertson's runs out of 2% milk?

• Scarcity

• Shortage

Which is a need?

• Pop

• Coffee

• Water

• Gatorade

• need
• want

Lollipop

• need
• want

Air, shelter, and food are all examples of ______________

• needs

• wants

Which of these explains a want, not a need?

• Shelter: If you don't have this you could possibly die in cold weather

• Chocolate: People like to eat this as a sweet treat, some may think it's delicious.

• Protein: This is important for having good health. It provides valuable nutrients.

• Clothes: You wear these to stay warm and out of jail.

Needs are the things that all people must have to __________.

• stay alive

• not need

• play everywhere

• throw away