Economics

What is the primary difference between a "want" and a "need" as illustrated in the image?

• Wants are essential for survival, while needs are not.

• Needs are essential for survival, while wants are additional desires.

• Wants and needs represent the same concepts in different cultures.

• Needs can be postponed, while wants cannot.

Do all people everywhere have the same wants and needs?

• Yes, all people have the same wants and needs.

• No, wants and needs vary among different people.

• Yes, but only needs are the same everywhere.

• No, only wants are the same everywhere.

In economics, what are resources?

• Tools and machines only

• Money and wealth

• Things that can be used to make what we want

• Professional skills

What is scarcity?

• The abundance of resources

• The lack of skilled labor

• The problem of having not enough resources to produce everything we want

• The distribution of wealth

What is an economic system?

• A government's way of collecting taxes

• A method of distributing resources

• A way of producing the things people need and want

• A system for political governance

Which of the following is NOT one of the three important decisions in an economic system?

• WHAT to produce

• WHERE to produce

• HOW to produce

• WHO gets the goods and services

What is the primary goal of a traditional economy?

• Wealth accumulation

• Survival

• Technological advancement

• Global trade

In a traditional economy, how are economic roles typically determined?

• Through personal choice

• Based on past family roles

• By government assignment

• Random selection

What characterizes the rate of change and innovation in a traditional economy?

• Rapid and disruptive

• Moderate and steady

• Very little and slow

• Periodic and significant

How are economic questions answered in a traditional economy?

• Based on futuristic predictions

• Through democratic voting

• Based on historical precedents

• Using scientific methods