Basic Economic Concepts Assessment

What is the definition of 'Choice'?

• A person who buys goods and services for personal use.

• The act of selecting between two or more options when making a decision.

• Something essential for survival, such as food, water, shelter, and clothing.

• The value of the next best alternative that you give up when making a choice.

Which of the following is an example of a 'Want'?

• Food

• A new phone

• Shelter

• Water

What does 'Opportunity Cost' refer to?

• The value of the next best alternative that you give up when making a choice.

• Man-made tools, machines, and buildings used to produce goods and services.

• The amount of goods and services that producers are willing and able to sell at different prices.

• Materials found in nature that are used to produce goods and services.

Who is a 'Producer'?

• A person who buys goods and services for personal use.

• A person or organization that creates goods or provides services.

• The people who work to produce goods and provide services.

• Activities performed by others that satisfy needs or wants.

What are 'Natural Resources'?

• Materials found in nature that are used to produce goods and services.

• Physical items that can be bought and sold.

• Man-made tools, machines, and buildings used to produce goods and services.

• The people who work to produce goods and provide services.

What is 'Scarcity' in economics?

• The limited nature of society's resources.

• The act of selecting between two or more options when making a decision.

• Materials found in nature that are used to produce goods and services.

• The value of the next best alternative that you give up when making a choice.

Which of the following is an example of a 'Need'?

• A luxury car

• Designer clothes

• Water

• Video games

What does 'Supply' refer to in economics?

• The amount of goods and services that producers are willing and able to sell at different prices.

• The desire of consumers to purchase goods and services.

• The limited nature of society's resources.

• The value of the next best alternative that you give up when making a choice.

What is 'Demand' in economics?

• The desire of consumers to purchase goods and services.

• The amount of goods and services that producers are willing and able to sell at different prices.

• The limited nature of society's resources.

• The value of the next best alternative that you give up when making a choice.

What are 'Capital' resources?

• Materials found in nature that are used to produce goods and services.

• Man-made tools, machines, and buildings used to produce goods and services.

• The people who work to produce goods and provide services.

• The limited nature of society's resources.