Economics Basics and Budget Quiz

What is the study of how people seek to satisfy their needs and wants by making choices?

• Macroeconomics

• Microeconomics

• Economics

• Entrepreneurship

Which branch of economics examines economy-wide phenomena such as changes in unemployment, national income, rate of growth, gross domestic product, inflation, and price levels?

• Macroeconomics

• Microeconomics

• Entrepreneurship

• Trade-offs

Which branch of economics analyzes the market behavior of individual consumers and firms in an attempt to understand the decision-making process of firms and households?

• Capital

• Macroeconomics

• Microeconomics

• Goods

What is a need?

• An item that we desire but is not essential to survival

• The most desirable alternative given up as the result of a decision

• Something that is necessary for survival

• A situation in which a good or service is unavailable

What is a want?

• A situation in which a good or service is unavailable

• The most desirable alternative given up as the result of a decision

• An item that we desire but is not essential to survival

• Something that is necessary for survival

What is scarcity?

• The idea that quantities of resources are limited to meet the unlimited wants of humans

• A situation in which a good or service is unavailable

• Something that is necessary for survival

• An item that we desire but is not essential to survival

What is a shortage?

• The idea that quantities of resources are limited to meet the unlimited wants of humans

• The most desirable alternative given up as the result of a decision

• A situation in which a good or service is unavailable

• Something that is necessary for survival

What are the four factors of production?

• Land, Labor, Capital, and Entrepreneurs

• Land, Labor, Capital, and Trade-offs

• Macroeconomics, Microeconomics, Capital, and Labor

• Goods, Services, Entrepreneurs, and Scarcity

What is a trade-off?

• The most desirable alternative given up as the result of a decision

• The idea that quantities of resources are limited to meet the unlimited wants of humans

• Alternatives that we sacrifice when we make a decision

• A situation in which a good or service is unavailable

What is an opportunity cost?

• The idea that quantities of resources are limited to meet the unlimited wants of humans

• Alternatives that we sacrifice when we make a decision

• A situation in which a good or service is unavailable

• The most desirable alternative given up as the result of a decision