Economics Quiz

Scarcity is the condition where wants exceed _____ resources.

• The unlimited availability of resources

• limited

• The concept of free goods and services

• The ability to produce without limits

Goods are different from services because:

• Goods are physical items, while services are actions performed for others

• Goods and services are the same thing

• Services are always cheaper than goods

• Only services contribute to the economy

A trade-off in economic decision-making involves _____.

• Giving up one benefit in order to gain another

• An increase in the availability of resources

• The price of an item decreasing over time

• A government program to increase employment

Productive resources include _____

• Human, natural, and capital resources

• Only raw materials used in production

• Goods and services purchased by consumers

• Money and stocks invested in businesses

An example of increasing productivity is producing more goods using the same amount of _____

• Hiring more workers without changing output

• Producing more goods using the same amount of resources

• Increasing wages without increasing production

• Reducing the number of machines used in a factory

_____ occurs because there are limited resources but unlimited wants.

A _____ happens when you give up one option in order to gain something else.

Increasing _____ means making more goods with the same amount of resources.

_____ are the inputs used to make all goods and services.

The process of _____ is necessary when choosing between different economic alternatives.