Economics Quiz: Scarcity and Free Markets

What is the main concept of scarcity in economics?

• Government control

• Unlimited resources

• Limited resources

• Equal distribution

What is the difference between a need and a want?

• A need is free, a want is costly

• A need is tangible, a want is intangible

• A need is necessary for survival, a want is not

• A need is a service, a want is a good

Which of the following is an example of a durable good?

• Cars

• Food

• Clothing

• Light bulbs

What is the main idea behind Adam Smith's concept of free markets?

• Rational self-interest is harmful

• Government regulation is necessary

• Invisible hand of the market

• Monopolies should be encouraged

What does TINSTAAFL stand for in economics?

• The Importance of Scarcity

• Total Income No Savings Total Assets For Life

• The Invisible Hand

• There Is No Such Thing As A Free Lunch

What is the consequence of scarcity according to the text?

• Everything has a cost

• Resources are unlimited

• Everything is free

• Scarcity is not a problem

What is the main problem faced by people in the given situation?

• Government control

• Excessive resources

• Lack of resources

• Equal distribution

What is the term used to describe the idea that every thing has a cost and there is not such thing as a free lunch?

• TINSTAAFL

• Invisible hand

• Free market

• Rational self-interest

What is a Good?

• Merchandise or possessions

• basics needed for survival

• things we would like but not necessary for survival

• work that is performed for someone

What is an example of a service? Check all that apply

• cars, home appliances, consumer electronics, furniture, sports equipment, and toys

• haircuts, home repairs, and forms of entertainment such as concerts.

• Food. Laundry detergent. Dish soap.

  Light bulbs. Paper products and Clothing

  
  

• work that doctors, lawyers, and teachers perform