Economics Unit 1 Test- Connecting Themes

What is the main problem in economics?

• Overproduction

• Scarcity

• Specialization

• Supply and Demand

People’s needs and wants are _____________________.

• Limited

• Unlimited

• Positive Incentives

• Scarce

What is an opportunity cost?

• The total amount of a purchase

• A chart showing the amount of resources available

• What a person gives us when they make a choice (the one they didn’t choose)

What does scarcity mean?

• There is not enough of something

• Resources are unlimited

• Needs and wants are endless

• There is too much of something

The necessities that allow a person to survive are called

• Wants

• Credit Cards

• Benefits

• Needs

Which of the following is not a natural resource

• Trees

• iPhones

• Water

• Oil

What are wants?

• The desires a person has

• Things you need to survive

• The choices you did not make

• Things used to produce other goods

Which of the following is not a need

• Food & Water

• Internet

• Clothing

• Shelter

What are the 3 steps to making and selling goods?

• Production, Distribution, and Consumption

• Needs, Wants, and Goods

• Human, Physical, and Capital Goods

• Physical, resourceful, and beneficial goods

What do we call the study of how people try to satisfy needs and wants?

• Production

• Government

• Economics

• Opportunity