ECONOMICS TEST REVIEW

Choose the correct definition of scarcity

• Scarcity is when there aren't enough goods to meet people's wants.

• Scarcity is when there are plenty of goods to meet people's wants.

Which one of these lists goods?

• food, clothes, toilet paper

• teachers, nurses, doctors

• farmers, grocery stores, truck drivers

Why is this an example of supply and demand?

• The stores ran out of meat because the people had a big need!

• The stores had a lot of meat because the people didn't want it.

• The stores ran out of meat because the people didn't want it.

When are goods priced high?

• When there is high demand for a good, but not a lot of that good available.

• When there is low demand for the good, and a lot of that good available

When are goods priced low?

• When there is high demand for a good, but not a lot of that good available

• When there is low demand for the good, and a lot of that good available

What is a consumer?

• A person who buys and uses goods

• A person who sells goods

What is a producer?

• A person who buys and uses goods

• A person who makes and sells goods

Which is an example of a consumer?

• you and me

• a farmer

Which is an example of a producer?

• you and me

• a farmer

Which is an example of a service?

• driving a bus

• buying groceries