Scarcity and Choice Quiz

What is the study of how individuals, businesses, and governments make choices when faced with a limited supply of resources?

• Economics

• Entrepreneurship

• Scarcity

• Shortage

Which of the following is an example of a need?

• Video games

• Stylish haircuts

• Food

• New smartphone

What are physical objects that someone produces?

• Services

• Goods

• Resources

• Capital

What is the term for actions or activities that one person performs for another?

• Goods

• Services

• Resources

• Capital

What is the difference between scarcity and shortage?

• Scarcity is temporary, shortage is long-term

• Scarcity is a problem faced by all societies, shortage is not

• Scarcity is the limited supply of resources, shortage is when consumers want more than producers are willing to provide

• Scarcity is unavoidable, shortage is avoidable

What is the term for people who decide how to combine resources to create new goods and services?

• Entrepreneurs

• Workers

• Consumers

• Investors

What are the three economic factors of production?

• Land, labor, and capital

• Goods, services, and resources

• Scarcity, shortage, and entrepreneurship

• Physical capital, human capital, and financial capital

What is the term for natural resources used to produce goods and services?

• Labor

• Capital

• Physical capital

• Land

What is the term for the effort people devote to tasks for which they are paid?

• Labor

• Capital

• Physical capital

• Land

What is the term for any human-made resource that is used to produce other goods and services?

• Labor

• Capital

• Physical capital

• Land