Basic Economic Concepts

Which of the following is considered a "need"?

• Video games

• Food

• Designer clothes

• Smartphone

A want is best described as:

• Something essential for survival

• Something desired but not essential

• A basic requirement for life

• An unavoidable expense

Why do people need to make choices in economics?

• Unlimited resources

• Unlimited needs

• Limited resources and unlimited wants

• Limited needs and limited wants

Scarcity means:

• Not enough money to buy things

• Limited resources to meet unlimited wants

• Unlimited resources to meet limited needs

• Availability of all goods

In economic terms, choice refers to:

• Choosing between available goods and services

• Deciding how to spend money

• Selecting the best investment

• Opting for the cheapest option

Opportunity cost is defined as:

• The total money spent on a product

• The next best alternative foregone

• The profit from selling goods

• The least important option chosen

If a student chooses to study instead of going to a concert, what is the opportunity cost?

• The cost of the concert ticket

• The time spent studying

• The enjoyment of the concert

• The grade earned

A business that decides to produce only one product faces opportunity cost because:

• It loses the chance to produce other products

• It has to spend more on marketing

• It can sell at higher prices

• It increases resources

Which of the following is an example of an opportunity cost?

• Unlimited availability of goods

• The process of producing goods

• The process of saving money

• Choosing between available goods and services

Choosing between two ice cream flavours is an example of:

• Choosing between two ice cream flavours

• Buying a shirt on sale

• Time spent working instead of relaxing

• Earning money from a job