Chapter 1

Which of the following is an example of a need?

• A smartphone

• A vacation

• Water

• A luxury car

What is the primary difference between needs and wants?

• Needs are essential for survival, while wants are not.

• Wants are essential for survival, while needs are not.

• Needs and wants are both essential for survival.

• There is no difference between needs and wants.

Which of the following is considered a service?

• A laptop

• A haircut

• A book

• A car

What type of resource is coal?

• Capital resource

• Human resource

• Natural resource

• Manufactured resource

Why are economic resources considered scarce?

• They are unlimited in supply.

• They are limited in supply.

• They are always available.

• They are not needed for production.

What is the basic economic problem?

• Unlimited resources and limited wants

• Limited resources and unlimited wants

• Unlimited resources and unlimited wants

• Limited resources and limited wants

Which of the following is an example of a capital resource?

• A factory building

• A forest

• A teacher

• A river

Which of the following is a renewable resource?

• Oil

• Coal

• Solar energy

• Natural gas

Which of the following is an example of a human resource?

• A computer

• A manager

• A truck

• A warehouse

Which of the following best describes opportunity cost?

• The money spent on a good or service

• The value of the next best alternative foregone

• The total cost of all alternatives

• The cost of production