Unit 6 Economics End of Unit Consolidation Quiz

What is Economics?

• The study of how people manage scarce resources

• The study of money

• The study of how money works

• The study of the stock market

The gap between limited resources and theoretically unlimited wants.

• Opportunity Cost

• Scarcity

• Explicit Cost

• Negative Incentives

The condition of scarcity can be described as one that

• afflicts only poor people and nations

• exists when our unlimited needs/wants exceed our limited resources

• exists when our limited resources exceed our unlimited needs/wants

• only applies to luxury items

What causes scarcity?

• specialization and division of labor

• trade-offs and opportunity costs

• limited resources and unlimited wants

• innovation and entrepreneurship

These are essential items required in order to survive.

• needs

• wants

• desires

• luxuries

These are also important items however, a person can still live without it.

• needs

• wants

• essentials

• survival kits

Is this a want or a need?

• Need

• Want

Is this a want or a need?

• Want

• Need

Is this a want or a need?

• Want

• Need

Is this a want or a need?

• Need

• Want