Economics diagnostic test

Why does scarcity exist?

• Each year workers tend to produce less than previously

• Machines wear out in time

• There are not sufficient resources to meet everyone's wants

• There is a limit to people's wants

Why will scarcity continue to be a problem in the future?

• Prices will rise

• Resources will always be finite

• Needs will decrease in the future

• World population will fall

A need is

• Something we have to have in order to survive

• Something we have to have to make our life better

A want is

• Something we have to have in order to survive

• Something we would like to have to make our life better

The difference between a good and a service is that:

• Goods are available in unlimited quantities and services are not

• Goods are tangible and services are not

• Services are available in unlimited quantities and goods are not

• Goods help satisfy unlimited wants and services do not

What is the basic economic problem?

• The value forgone from the next best alternative

• The fact that the world has finite resources but humans have infinite wants

• Too many resources

• The fact that the world has infinite resources but humans have finite wants

Which of the below is not a scarce resource?

• Oil

• Sea water

• Natural gas

• Gold

Economics Goods

• water

• plants

• sun light

• car

Free Goods

• Handphone

• House

• air

• machine

Why will a scarcity continue to be a problem in the future?

• Price will rise

• The quantity of resources will decline

• wants will continue to increase

• world population will fall