Economics Review

Q1 Economics is….

• A science that is about needs or wants

• A social science that studies how society satisfies its NEEDS and WANTS using scarce RESOURCES.

• A social science that studies how society does not satisfy needs and wants

• A science that is about finance

Q2. What are the definitions of needs and wants?

• Need: It is not immediate for survival

  Want: Something that is very important for survival

• Need: It is immediate which we need to survive.​Want: Is anything in excess of needs that is not necessary for our survival.

• Need: Is anything in excess of wants that is not necessary for our survival.

  Want: It is immediate which we need to survive.

Q3 What definition best describes opportunity cost?

• When we have to make choices between items because we have scarce resources. The item that we do with is the opportunity cost.

• When we have to make choices between items because we have a lot of resources. The item we do without is the opportunity cost.

• When we have to make choices between items because we have scarce resources. The item that we do without is the opportunity cost.

Q5 How do supply and demand affect market prices?

• When supply exceeds demand, prices tend to rise.

• When demand exceeds supply, prices tend to fall.

• When supply equals demand, prices tend to stabilize.

Q6 What role do incentives play in economic decision-making?

• Incentives have no effect on decision-making.

• Incentives can motivate individuals to change their behavior in pursuit of economic goals.

• Incentives only apply to businesses, not individuals.

Q6. Which of the following is a demand curve?

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Q7. Which graph shows a change in the price of other goods and services affecting the demand curve?

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• 
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Q8 How do external factors influence consumer behavior?

• External factors such as culture, social status, and advertising can significantly influence consumer choices.

• External factors have no impact on consumer behavior.

• External factors only affect businesses, not individual consumers.

Q9 How does government intervention affect market equilibrium?

• Government intervention can disrupt market equilibrium by imposing price controls or taxes.

• Government intervention always leads to a surplus in the market.

• Government intervention has no effect on market equilibrium.

When does marginal utility set in?

• 1st burger

• 2nd burger

• 3rd burger

• 4th burger