Economics Review

What do economists mean by the term "scarcity"?

• Having too few or too little of resources

• Having too many resources

• Having just enough resources

• Having the correct amount of resources

Which choice best describes the economic problem of scarcity in the world?

• People have limited wants there is an unlimited amount of resources.

• People have unlimited wants but there is a limited amount of resources

• People have no wants so resources don't matter

In what economic system does the government determine what to produce, how to produce it, and how to market it?

• Traditional Economy

• Market Economy

• Command Economy

• Mixed Economy

In what economic systems do private citizens determine what to produce, how to produce it, and how to market it?

• Traditional Economy

• Market Economy

• Command Economy

• Mixed Economy

Economics is the study of how people make choices about ways to use _______________ resources to fulfill their unlimited wants and needs.

• Limited

• Unlimited

• Natural

• Man-made

The limited availability of resources is known as...

• Scarcity

• Voluntary Exchange

• Profit

• Opportunity Cost

Which of the following is NOT a basic question of economic systems?

• What should be produced?

• For whom should it be produced?

• How long should it be produced?

• How should it be produced?

The total value of goods and services produced within the borders of a country during a specific time period, usually one year.

• GDP

• GNI

• GDP per capita

• HDI

Goods or services that are not necessary, but that we desire or wish for. Examples: video games, toys, concert tickets, etc.

• Demand

• Needs

• Wants

• Presents

The United States is a pure market economy.

• True

• False