Basic economic concepts

Which of the following best describes needs?

• Basic necessities of life without which we cannot live.

• Those things which are not necessary for our survival.

• Not having enough resources to satisfy our wants.

• Sacrificing of the next best alternative.

Which of the following is not an example of a need?

• Water

• Clothing

• Car

• Shelter

------------ are things which are not necessary for our survival.

------------ are inputs that are required to create outputs which are products and services.

which of the following refers to the man-made goods used in the production of other goods and services?

• Natural resources

• Renewable resources

• Human resources

• Manufactured resources

Which of the following describes renewable resources?

• Those which can be replaced in a reasonable time or those which are available consistently.

• Those that take a long period of time to get replace.

• All the resources that we get from nature.

• People who are involved in production of goods and services.

What leads to scarcity?

• Limited wants and unlimited resources.

• Limited resources and limited wants.

• Unlimited wants and limited resources.

• Unlimited wants and unlimited reourcs.

The thing we give up when we make a choice is called..

• Scarcity

• Consumption

• Choice

• Opportunity cost

What is consumption?

• Making the best use of the resources.

• Using up of goods and services to satisfy human wants.

• Selection between two or more commodities.

• Giving up something.

What is scarcity?

• When resources are available in abundance

• The thing we give up when we make a choice

• Not having enough resources to satisfy our wants.