Hey there, class! Abigail, Michael, and Zoe are debating about a fundamental issue in economics. They say, 'The mismatch of unlimited wants and needs and limited economic resources is THE BASIC ECONOMIC PROBLEM.' Do you think they are right?

• True

• False

Answer explanation

Yes, they are right. The basic economic problem arises from the conflict between unlimited wants and limited resources, which necessitates choices and prioritization in economics.

Hey there, students! If many consumers, like Samuel and Harper, want a particular service, do you think its price will probably go up?

• True

• False

Answer explanation

True. When many consumers desire a particular service, demand increases. According to the law of supply and demand, higher demand typically leads to higher prices.

Imagine Michael and Ava are on a quest to make the best economic decisions! They need to figure out ________.

• How to spend their time wisely

• How to use their income effectively

• Which wants and needs will be satisfied first

• Whether to buy a product now or save for later

Answer explanation

Michael and Ava need to prioritize their wants and needs to make effective economic decisions. This choice focuses on determining which desires are most important to satisfy first, making it the correct answer.

Hey there, Ethan! The first step in the decision-making process is to _______

• Identify your choices

• Define the problem

• Evaluate Alternatives

• Review your choice

Answer explanation

The first step in decision-making is to define the problem. This involves understanding the issue at hand before identifying choices or evaluating alternatives, ensuring a focused approach to finding a solution.

Hey there, Scarlett and Elijah! Let's dive into a fun fact: The basic economic problem arises from scarcity. What do you think?

• True

• False

Answer explanation

True. The basic economic problem is indeed rooted in scarcity, which refers to the limited resources available to meet unlimited wants and needs. This fundamental issue drives economic decision-making.

Hey James, Ava, and Ethan! The primary reason why businesses invest resources and take risks is to ________.

• provide jobs

• produce goods and services

• improve their products

• earn a profit

Answer explanation

The primary reason businesses invest resources and take risks is to earn a profit. While providing jobs, producing goods and services, and improving products are important, the ultimate goal is to generate financial returns.

Hey there, students! Imagine Grace and Scarlett are discussing what happens when demand for a product takes a nosedive. They wonder, its price will likely ________.

• Increase

• Decrease

• Remain the same

• Become unpredictable

Answer explanation

When demand for a product decreases, sellers often lower the price to attract buyers. Therefore, the price will likely decrease.

Imagine Michael and Abigail are discussing how businesses often take risks in order to ________.

• Expand their market

• Reduce costs

• Increase competition

• Maximize their profits

Answer explanation

Businesses often take risks to maximize their profits, as taking calculated risks can lead to greater rewards and financial success. This aligns with their primary goal of increasing profitability.

Kai and Mia are debating about the concept of opportunity cost. They believe it refers to the value of the next best alternative that is forgone when making a decision. Do you think they are right?

• True

• False

Answer explanation

Kai and Mia are correct. Opportunity cost indeed refers to the value of the next best alternative that is forgone when making a decision. Therefore, the statement is true.

Hey Evelyn, in a competitive market, if the supply of a product increases, what do you think will happen to the price? Will it likely ________?

• Increase

• Decrease

• Remain the same

• Become volatile

Answer explanation

In a competitive market, an increase in supply typically leads to a surplus of the product. To clear this surplus, sellers will lower prices, causing the price to likely decrease.