Economics Quiz

What is scarcity?

• The fundamental economic problem facing all societies resulting from a combination of scarce resources and people's virtually unlimited needs and wants

• The abundance of resources available to meet people's needs and wants

• The study of how people use resources to produce goods and services

• The process of allocating resources to maximize profit

What does economics deal with?

• The study of how people satisfy seemingly unlimited and competing needs and wants with the careful use of scarce resources

• The study of how to increase the abundance of resources

• The study of how to eliminate scarcity

• The study of how to create unlimited resources

What is a 'Need'?

• A basic requirement for survival, including food, clothing, and shelter

• Something we would like to have but is not necessary for survival

• A tangible economic product that is useful and transferable to others

• A service provided to satisfy wants and needs

What is a 'Want'?

• A basic requirement for survival, including food, clothing, and shelter

• Something we would like to have but is not necessary for survival

• A tangible economic product that is useful and transferable to others

• A service provided to satisfy wants and needs

How are 'Wants' usually expressed?

• In terms of basic needs

• In terms of economic products

• In terms of services

• In terms of intangible goods

Into what two groups do products fall?

• Needs and Wants

• Goods and Services

• Tangible and Intangible

• Economic and Non-economic

What is a 'Good'?

• A basic requirement for survival, including food, clothing, and shelter

• Something we would like to have but is not necessary for survival

• A tangible economic product that is useful, transferable to others, and used to satisfy wants and needs

• A service provided to satisfy wants and needs

What is a durable good?

• A good that lasts for at least 3 years when used regularly

• A good that wears out or is used up within 3 years

• A good that is consumed immediately

• A good that is intangible

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

• Food

• Writing paper

• Tools

• Clothing items

What is a nondurable good?

• A good that lasts for at least 3 years when used regularly

• A good that wears out, is used up, or lasts for fewer than 3 years when used regularly

• A good that is intangible

• A good that is a service