The Economy Then and Now Quiz

What are natural resources?

• Activities that satisfy people's wants

• Goods made by people and used to produce other goods

• People working to produce goods and services

• Materials that come directly from nature

What is an example of a human resource?

• A computer

• A worker

• A factory

• Water

What are capital resources?

• People working to produce goods and services

• Materials that come directly from nature

• Activities that satisfy people's wants

• Goods made by people and used to produce other goods

What is a producer?

• Someone who buys goods

• Someone who uses resources to make goods or provide services

• Someone who trades goods

• Someone who saves money

What is an economic choice?

• The cost of a product

• The choice made among alternatives

• The benefit of a service

• The next best choice given up

What is opportunity cost?

• The money spent on a choice

• The next best choice given up when a decision is made

• The benefit gained from a choice

• The resources used to make a product

Why do people trade?

• To reduce opportunity cost

• To benefit from goods and services they do not have

• To specialize in production

• To save money

What does specialization encourage?

• Trading

• Reducing costs

• Saving money

• Producing all goods locally

What is an example of a good?

• A teacher

• A car

• A haircut

• A bank

What is an example of a service?

• A book

• A haircut

• A bicycle

• A meal