Exploring the Basics of Economics

The video introduces the concept of economics, focusing on the choices people make to satisfy their unlimited wants and needs with limited resources. It explains the difference between wants and needs, and the role of goods and services in fulfilling them. The video also covers the concept of scarcity and how it drives economic decisions, both at individual and societal levels. It discusses the three basic economic questions: what to produce, how to produce, and who will use the products. The video concludes by encouraging viewers to observe economic decisions in their community.

What is the fundamental problem that economics tries to address?

• How to increase the supply of money

• How to satisfy unlimited wants with limited resources

• How to create unlimited resources

• How to eliminate wants

Which of the following is an example of a service?

• A phone

• A haircut

• A movie

• A book

What is a 'good' in economic terms?

• A limited resource

• An action provided to us

• A desire or need

• A physical product we can hold and touch

Which of the following is NOT considered a resource in economics?

• Capital

• Unlimited wants

• Labor

• Natural resources

What does scarcity mean in economics?

• Having unlimited resources

• Having more resources than needed

• Having no resources at all

• Having a limited supply of resources to meet unlimited wants

Which question is NOT one of the three basic economic questions?

• Why should it be produced?

• Who will use it?

• How will it be produced?

• What should be produced?

In the example of a video game, what is considered 'capital'?

• The consumers

• The natural resources

• The workers

• The money, computers, buildings, and software

What must a company determine to market a product successfully?

• Who will buy the product

• The location of production

• The price of the product

• The resources needed

Which of the following is a decision a country might face due to limited resources?

• Securing better healthcare

• All of the above

• Expanding the military

• Spending more on education

Why do experts study economics?

• To increase the supply of money

• To create unlimited resources

• To understand the effects of economic decisions on people and the economy

• To eliminate scarcity