B.E. Unit 2 Vocab 2.02 part 1

When Maria buys a laptop for school, she is engaging in which economic activity?

• Production

• Consumption

• Distribution

• Exchange

A company produces sneakers in China and ships them to stores in the U.S. for sale. This process is an example of:

• Scarcity

• Production

• Distribution

• Trade-off

Which of the following is an example of production?

• A chef preparing a meal at a restaurant

• A customer eating at a restaurant

• A delivery driver bringing food to a customer

• A food critic writing a review

Jeremiah has $50 to spend and must choose between buying a new video game or a pair of shoes. He decides to buy the video game. What is the trade-off in this situation?

• The video game he purchased

• The pair of shoes he did not buy

• The money he spent

• The store where he shopped

Which of the following best explains the difference between a need and a want?

• Needs are things you buy with cash, and wants are bought with credit

• Needs are things necessary for survival, while wants are things that improve quality of life

• Needs are things everyone has, while wants are unique to individuals

• Needs are free, while wants always cost money

Which of the following is an economic want rather than a need?

• A house

• A bottle of water

• A luxury sports car

• A loaf of bread

A person desires friendship and happiness. This is an example of a:

• Noneconomic want

• Economic want

• Trade-off

• Scarcity

Due to a drought, a community has limited access to clean water. How might this scarcity affect the economy of the area?

• Water prices may increase due to higher demand

• There will be no impact on the economy

• The government will provide unlimited free water

• People will stop using water completely

Luis mows his neighbor’s lawn in exchange for a free haircut. What type of exchange is this?

• Scarcity

• Trade-off

• Barter

• Consumption

A country with an abundance of oil trades with another country that produces high-tech electronics. How does this trade benefit both countries?

• It allows both countries to get what they need at lower costs

• It forces both countries to produce everything they need

• It decreases the demand for imported goods

• It eliminates the need for money