Standard 2.00 Ind 2.02 LAP 901

Into what two categories can wants be divided?

• Unlimited and limited

• Unlimited and economics

• Economic and noneconomic

• Unlimited and noneconomic

Seeing a movie at a theater would be considered a(n) __________ want.

• Economic

• Unlimited

• Limited

• Noneconomic

Friendship would be considered a(n) __________ want.

• Economic

• Unlimited

• Limited

• Noneconomic

Which of the following groups of words best describes wants:

• Limited, changing, and compensating

• Limited, unchanging, and competing

• Unlimited, changing, and competing

• Unlimited, unchanging, and compensating

Water and air are examples of __________ resources, while people are considered to be __________ resources.

• Natural; human

• Physical; mental

• Capital; human

• Mental; natural

In economics, capital goods include

• Labor and management

• Buildings and equipment

• Mental and physical work

• Trees and water

Why are resources considered limited?

• Everyone has them, and they change

• There are not enough available for everyone to have as much of them as desired

• There are so many that people must decide which ones to choose at any one time

• Entrepreneurs do not invest enough of them

A gap between unlimited wants and limited resources creates

• Economics

• Resources

• Scarcity

• Wants

Michelle is trying to decide which goods and services to purchase so that she can get maximum satisfaction. Michelle is

• Creating scarcity

• A producer

• Economizing

• Increasing distribution

John only had $40 to spend and couldn't decide whether to buy a new pair of jeans or to go to an amusement park. He finally decided to spend his money on the amusement park. What was the opportunity cost of his decision?

• New pair of jeans

• Trip to amusement park

• $40

• No opportunity cost was involved