Economics Quiz

People who use resources to produce goods and/or provide services are called:

• Consumers

• Natural Resources

• Producers

• Capital Resources

What are goods?

• Activities that satisfy wants

• Services we provide for other people

• People who utilize resources

• Things that people make or use

With $1.00, you can either buy an ice cream or a candy bar. This is called a:

• Economic choice

• Opportunity cost

• Scarcity

• Specialization

Why do people make choices?

• Because regions often specialize in certain goods and services.

• Because some choices do not have opportunity costs.

• Because they cannot have everything they want.

• Because resources are used to produce goods and services.

Natural resources are:

• Materials that come directly from nature

• Goods made by people and used to produce other goods and services

• People working to produce goods and services

• Things that people make or use to satisfy their needs and wants

What is an opportunity cost?

• The choice between two possibilities

• The choice that is given up when a decision is made

• The decision-making model used to make a choice

• A type of economic specialization

Why does specialization encourage trade?

• People want goods and services they do not have

• The price of goods and services decreases with specialization

• Specialization encourages people to travel and spend money

• Specialization provides different jobs in a community