Economics Basics

What is the term we use to describe when there is not enough goods or services to satisfy our wants and desires?

• Wants

• Demands

• Needs

• Scarcity

What is the difference between a want and a need?

• Both involve things that are required to live, but needs are provided by the government.

• A want involves something we desire, a need is something that is required to survive.

• A want is something we already have and want more of, while a need is something we do not have, but desire it.

• A need is something we have that others desire from us, while a want is the opposite of it.

Which of the following is not one of the economic questions that economists try to answer?

• Why is it being produced?

• What will be produced?

• How will it be produced?

• For whom will it be produced?

What do we call the things that are needed to produced goods or provide services?

• Opportunity Costs

• Priors to Consumption

• Factors of Production

• Variables of Production

A factory worker would be an example of which factor of production?

• Land

• Labor

• Entrepeneurship

• Capital

The money and man-made resources to help you produce your goods would be a part of which factor of production?

• Labor

• Capital

• Entrepreneurship

• Wealth

What is a cost-benefit analysis?

• When the consequences outweigh the benefits of an action.

• An analysis that records how expensive an action will be.

• An analysis where an employer evaluates whether a worker should be fired.

• Where an individual weights the benefits and the consequences of an action.

The following is an example of what kind of economic model?

• Production Possibilities Curve

• Opportunity-Cost Plots

• Factors of Production

• Law of Scarcity

A production possibilities curve (PPC) can help show all of the following except...

• Shows the productive trade-offs between four and more different produced goods.

• Shows maximum efficiency, measured by the curve itself

• Shows underutilization and under-efficiency, which is measured by points inside the curve

• Shows productively impossible levels of production, measured outside the curve.

Which economic view involves looking at the overall economy of a nation, focusing on topics like unemployment and inflation.

• Microeconomics

• Macroeconomics

• Positive Economics

• Normative Economics