Understanding Basic Economics

What does economics primarily study?

• The study of the choices people make to satisfy their wants and needs

• The study of human behavior in isolation

• The study of planets and galaxies

• The study of historical events

What are considered resources in economics?

• Unlimited wants and needs

• Only money and gold

• Natural resources, capital, and labor

• Ideas and thoughts only

What does scarcity mean in economics?

• Having unlimited resources

• Having a limited supply of resources

• The ability to buy anything you want

• None of the above

Which of the following is a good, not a service?

• A book

• A music performance

• A dental checkup

• A haircut

What drives economic decisions in society according to the text?

• Scarcity

• Abundance of resources

• Government regulations

• Individual preferences only

What must a company consider when creating a new video game?

• The color of the game cover

• The type of game, resources needed, and the target audience

• None of the above

• Only the cost of advertising

What is a service?

• A natural resource

• A type of software

• An action provided to us

• A physical product we can hold

What is the fundamental problem in Economics?

• scarcity

• production

• underutilization

• statistics

When making an economic decision, you have to consider the ____ (the value of the thing you are giving up).

• production possibilities curve

• opportunity cost

• incentive

• underutilization

Scarcity affects what a consumer buys and what a producer makes.

• True

• False