Business Essentials - 2.02C Economics and Economic Activities

Into what two categories can wants be divided?

• Unlimited and noneconomic

• Economic and noneconomic

• Unlimited and limited

• Unlimited and economics

Seeing a movie at a theater would be considered a(n) __________ want.

• unlimited

• limited

• economic

• noneconomic

Friendship would be considered a(n) __________ want.

• economic

• limited

• noneconomic

• unlimited

Which of the following groups of words best describes wants:

• Limited, changing, and compensating

• Limited, unchanging, and competing

• Unlimited, unchanging, and compensating

• Unlimited, changing, and competing

Water and air are examples of __________ resources, while people are considered to be __________ resources.

• capital; human

• natural; human

• physical; mental

• mental; natural

In economics, capital goods include

• buildings and equipment.

• labor and management.

• mental and physical work.

• trees and water.

Why are resources considered limited?

• Everyone has them, and they change.

• Entrepreneurs do not invest enough of them.

• There are so many that people must decide which ones to choose at any one time.

• There are not enough available for everyone to have as much of them as desired.

A gap between unlimited wants and limited resources creates

• scarcity.

• economics.

• wants.

• resources.

Michelle is trying to decide which goods and services to purchase so that she can get maximum satisfaction. Michelle is

• creating scarcity.

• economizing.

• increasing distribution.

• a producer.

John only had $40 to spend and couldn’t decide whether to buy a new pair of jeans or to go to an amusement park. He finally decided to spend his money on the amusement park. What was the opportunity cost of his decision?

• New pair of jeans

• $40

• No opportunity cost was involved.

• Trip to amusement park