economics 2

What is an economic want?

• Things people need in order to survive.

• Things people would like to have, but aren't necessary for survival

• Things people don't want anymore.

Economics is the study of

• the distribution of surplus goods to those in need

• affluence in a morally bankrupt world

• ways to reduce wants to eliminate the problem of scarcity

• the choices we make because of scarcity

Human capital is

• machinery that meets or exceeds federal safety standards for use by humans

• all capital owned by individuals or corporations, but not by governments

• the skill and knowledge of workers

• all capital owned by individuals, but not by corporations or governments

The U.S. is an example of a __ economy.

• mixed

• market

• command

• traditional

In a Command Economy

• the market dictates the answers to the fundamental economic questions

• competition helps to answer the fundamental economic questions

• consumers decide the answers to the fundamental economic questions

• the government dictates the answers to the fundamental economic questions

Which of the following best explains the meaning of opportunity costs?

• The risk associated with producing a new item

• The cost of choosing one alternative over another

• The cost of business failure

• The initial cost of starting a new business

__________study of how people (including companies/countries) make choices on buying, selling, using, and distributing goods/services.

• Economics
• Consumer Science
• Opportunity Costs

Which of these are examples of goods?

• 
• 
• 
• 

Answer explanation

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

Which of these are examples of services?

• 
• 
• 
• 

Answer explanation

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

Shelter is ​ ​a ​ (a)   for all humans. But, a mansion is an example of a ​ ​ (b)   .

• 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.