Econ Unit 1 Vocabulary Practice

Which of these are examples of goods?

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Answer explanation

In economics, goods are physical products that can be bought and sold.

Which of these are examples of services?

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Answer explanation

In economics, services are jobs that people do for someone else.

We will always have to make choices about how to use our resources. This is because of the problem of ________.

• economics

• limited

• scarcity

• wants and needs

Answer explanation

Scarcity is the main problem in economics. We have unlimited wants and needs, but limited resources that we can use to meet our wants and needs.

Shelter is ​ ​a ​ ________ for all humans.

• need
• want
• service
• good

Answer explanation

In economics, wants are things that we desire because they are nice to have, or make our lives better. Needs are things that we cannot survive without.

The system in which goods and services are produced, bought, and sold is known as ________.

• economics

• economist

• the economy

• scarcity

When I study the way that goods and services are produced, I am acting as an ___________.

Answer explanation

Economists are people who study economics.

Economists know that people often have to make _______, or choose between different options.

• resources

• decisions

• economics

• limited

Right now, you are studying economics vocabulary terms. When you take a summative quiz, this practice will help you get a good grade. Getting a good grade is an _________ that motivates you to study.

• decision

• resource

• cost

• incentive

Answer explanation

In economics, incentives are positive OR negative factors that motivate people to do something.

In this case, wanting to get a good grade motivates someone to study vocabulary.

At lunch, you give your friend an apple that you don't want, and they give you a banana in exchange. This is an example of ________.

• economics

• cost

• incentive

• trade

Instead of going out with your friends on a school night, you chose to stay home and study economics. The next day, you got 100% on your economics test! Getting an excellent grade was a ________​ of your decision to study.

• benefit

• cost
• trade
• resource

Answer explanation

Benefits are positive things that we gain by making decisions.