Economic Principles - Economics Activities, Supply and Demand

Which of the following is a human resource?

• Employees

• Machinery

• Buildings

• Vehicles

Purchasing a new phone may make it easier to get in touch with friends and family, but it could be much more expensive than your current phone. How would you decide on buying a new phone?

• Consider the trade offs and opportunity cost

• Ignore the price and buy the latest model

• Stick with the current phone

• Ask friends for their opinions

Economics is the study of how people use resources to:

• Maximize wealth

• Satisfy unlimited wants

• Buying and selling resources

• Increase production

Distinguish between economic and noneconomic wants.

• Economic wants are desires for goods and services that can be satisfied by purchasing them, while noneconomic wants are desires that cannot be satisfied with money.

• Economic wants are desires for goods and services that cannot be satisfied by purchasing them, while noneconomic wants are desires that can be satisfied with money.

Identify the three categories of resources.

• Natural resources, human resources, and capital resources

• Physical resources, digital resources, and financial resources

• Renewable resources, non-renewable resources, and perpetual resources

• Tangible resources, intangible resources, and human resources

What is scarcity?

• A situation where resources are limited

• An abundance of resources

• A type of economic surplus

• A financial term for profit

Discuss the role of trade-offs in economic decision-making.

• Trade-offs are not important in economic decision-making.

• Trade-offs involve choosing between different options.

• Trade-offs are only considered in large-scale economic policies.

What is consumption?

• The use of goods and services

• The production of goods and services

• The distribution of goods and services

• The storage of goods and services

What is distribution?

• Purchasing natural resources and paying for human resources

• A type of software license

• A method of delivering goods

• A mathematical operation

Which of the following are factors that impact the values attached to money ?

• Productivity

• Interest rates

• Economic growth

• Cultural beliefs