Economics Quiz revision

Write a definition of needs. Provide 3 examples.

• Needs are basic requirements for survival, such as food, water, and shelter.

• Needs are desires or wishes that are not essential for survival.

• Needs are luxury items that enhance comfort and lifestyle.

• Needs are optional activities that provide entertainment and leisure.

Write a definition of wants. Provide 3 examples.

• Wants are necessities required for survival, such as food and water.

• Wants are desires for goods and services that are not essential but are desired to enhance quality of life.

• Wants are mandatory obligations that must be fulfilled by law.

• Wants are the same as needs and are required for basic functioning.

What is the definition of relative scarcity?

• The condition where resources are limited in comparison to the wants and needs of individuals.

• The situation where resources are abundant and exceed the wants and needs of individuals.

• The state where resources are equally distributed among all individuals.

• The scenario where resources are unlimited and can satisfy all human wants.

Write a definition of natural resources. Provide 3 examples.

• Natural resources are materials or substances that occur in nature and can be used for economic gain. Examples include water, minerals, and forests.

• Natural resources are man-made materials used for construction. Examples include bricks, cement, and steel.

• Natural resources are digital assets used in technology. Examples include software, data, and algorithms.

• Natural resources are synthetic chemicals used in agriculture. Examples include fertilizers, pesticides, and herbicides.

Write a definition for consumer.

• A person who purchases goods and services for personal use.

• A person who sells goods and services.

• A person who produces goods and services.

• A person who manages a business.

Write a definition for producer.

• An organism that produces its own food through photosynthesis or chemosynthesis.

• A person who creates and oversees the production of films, music, or other media.

• A company that manufactures goods for sale.

• A person or organization that supplies goods or services.

What is the law of supply?

• The principle that an increase in price results in an increase in quantity supplied

• The principle that a decrease in price results in an increase in quantity supplied

• The principle that price and quantity supplied are unrelated

• The principle that supply is always constant regardless of price

What is the law of demand?

• The principle that, all else being equal, as the price of a product increases, quantity demanded decreases.

• The principle that, all else being equal, as the price of a product increases, quantity demanded increases.

• The principle that, all else being equal, as the price of a product decreases, quantity demanded remains constant.

• The principle that, all else being equal, as the price of a product decreases, quantity demanded decreases.

How do Australian consumer laws protect consumers?

• By providing warranties and guarantees

• By allowing businesses to set any terms they want

• By restricting consumer rights

• By eliminating consumer protection agencies

What rights do we have as consumers (What can we expect when we buy something)?

• Right to safety, information, choice, and to be heard

• Right to return any product at any time

• Right to get products for free

• Right to demand any price for a product