Econ Pretest

What is economics?

• The study of needs and wants

• The need to use money

• The creation of money

• The buying of goods and services

What are needs?

• Things you want

• Things you need to survive

• Hopes and dreams

• Unknown

What are wants?

• Things you need to survive

• Unnecessary things

• Wishes and hopes

• Things you would like

What is scarcity

• When you can't find something

• A limited amount of resources to meet a limited need

• A limited amount of resources to meet unlimited wants and needs

• A person who scares people

What are causes of scarcity?

• Personal perspective

• Poor distribution of resources

• Rapid increase in demand

• All of the above

How do we deal with scarcity?

• Doing without something.

• Creating more resources.

• Making better use of our resources.

• All of the above.

What is a trade off?

• Uhhh...

• When you give someone something and they give you nothing.

• When you choose between two possible uses for a resource, giving up one alternative for another.

• None of the above

What is opportunity cost?

• The value of time, money, goods, and services given up in an economic choice.

• How much you have to pay for groceries.

• The amount of money you make from your job.

• The amount of taxes the government takes out of each paycheck.