Econ-1.1 Formative Assessment Option 2

What is considered the foundation of economic study?

• Market equilibrium

• Scarcity

• Supply and demand

• Consumer behavior

What drives human behavior according to economic principles?

• Social influences

• Government policies

• Making choices based on cost and benefits

• Desire for wealth

How are goods different from services?

• Goods are always more expensive than services

• Services are tangible, while goods are not

• Goods are tangible and observable; services are not tangible

• Services can be stored for future use, but goods cannot

What is an example of a need?

• Food

• Video games

• Designer clothing

• Smartphones

What is the primary difference between scarcity and shortage?

• Shortage affects only luxury goods, while scarcity affects all goods

• Scarcity is related to wants, while shortage is related to needs

• Shortage can be solved by market dynamics, scarcity is a constant issue

• Scarcity is temporary, while shortage is permanent

What typically happens first to solve a shortage?

• Decrease in product quality

• The market price of the good increases

• Increase in consumer demand

• Government intervention

Why was Taylor Swift's shirt considered scarce?

• It was only available at her concerts

• It was signed by Taylor Swift

• It had a price tag attached

• It was made of unique materials

What caused the shortage of Taylor Swift's shirts during Christmas?

• There was a manufacturing issue

• The shirts were only sold online

• The price was reduced to $13, increasing demand

• The price was set too high

What indicates the scarcity of registered nurses in California?

• The requirement for a nursing license

• The high cost of living

• The number of job openings not filled

• The average wage of $113,000

How can a shortage of registered nurses be resolved?

• By reducing the number of hospitals

• Through government regulation

• By increasing the pay for nurses

• By lowering the standards for nursing qualifications