Chapter 1 and 2 Revision (Economics)

Why does scarcity exist?

• Each year workers tend to produce less than previously

• Machines wear out with time

• Not enough resources to produce all the needed products

• People’s wants are limited

Why will scarcity continue to be a problem in the future?

• Prices will rise

• The amount of resources will decrease

• People's wants will increase

• The world's population will decrease

Which of the following is a free good?

• Free sandwiches given away by a restaurant to attract customers

• Recycled paper

• Bottled water

• Wind

Desires for goods and services is ....

• Wants

• Scarcity

• Resources

• Goods

A situation where there is not enough resources to satisfy everyone’s wants.

• Wants

• Scarcity

• Resources

• Goods

Factors used to produce goods and services

• Wants

• Scarcity

• Resources

• Goods

The Economic Problem is...

• Not having enough resources to produce all the people's wants

• Not having enough money to buy what you need

• Not having enough needs for all the available products

• All the answers are correct

A product which does not require any resources to make it and so does not have any cost to use it

• Economic goods

• Free goods

• Rare goods

• None of the answers is correct

A product which requires resources to produce it and has a cost to use it.

• Economic goods

• Free goods

• Rare goods

• None of the answers is correct

Which of the following is an economic good?

• Water in a river

• Light from the sun

• Olive oil

• Wind