Unit 1 Review: Basic Economic Concepts

Scarcity means:

• Too much of something you wanted

• The exact amount of something you wanted

• Not enough of something you wanted

What is an economic want?

• Things people need in order to survive.

• Things people would like to have.

• Things people don't want anymore.

Who is affected by the condition of scarcity?

• The rich

• Large economies

• All societies

• Producers (ie: businesses)

Why do all societies have to make decisions about how resources will be used?

• People are greedy

• There are not enough resources for those who want them

• Resources are too expensive for most people

• Because there is a huge gap between the rich and poor

TRUE or FALSE: We can have everything that we want because we have unlimited resources.

• TRUE

• FALSE

which of the following would be CAPITAL

• a machine

• a box of cereal

• water

• a new risky idea

Which of the following would NOT be land

• water

• minerals

• toothpaste

• crude oil

Economics is the study of how individuals _________ to allocate (distribute) their scarce resources!

• choose

• refuse

• forget

• avoid

Land includes...

• The "gifts of nature" or natural resources not created by human effort.

• the tools, equipment, and factories used in production of goods and services

• people with all their efforts and abilities

• individuals who start a new business or bring a product to market.

Capital refers to...

• The "gifts of nature" or natural resources not created by human effort.

• people with all their efforts and abilities

• the tools, equipment, and factories used in production of goods and services

• individuals who start a new business or bring a product to market.