Chapter 17

What is the main focus of economics?

• Government policies

• Personal decisions

• Choices and their consequences

• Business profitability

• Economic growth

Which of the following is an example of a choice people face every day, as mentioned in the passage?

• Deciding on government taxes

• Deciding what goods to produce

• Deciding what to eat for lunch

• Deciding how to spend taxpayer money

• Deciding how to spend taxpayer money

What must consumers, businesses, and governments consider when making choices?

• The amount of money they have

• The potential consequences of their choices

• The popularity of their decisions

• The wishes of other people

• The number of available choices

Why is making economic choices tricky for consumers?

• Because we have limited wants

• Because we have a wide range of needs and wants

• Because our needs are unlimited

• Because we can’t afford to make choices

• Because choices are made by the government

What causes relative scarcity?

• Our needs are unlimited

• Our wants are unlimited, but the resources to fulfill them are limited

• There are too many resources

• The government controls resources

• There are no new wants emerging

Which of the following is an example of a want?

• Water

• Shelter

• Food

• A new smartphone

• Clothing

   What happens as soon as one want is satisfied?

• We no longer have any more wants

• We desire another want

• We are fully satisfied

• We stop consuming goods

• Our needs become fewer

What is the term for the problem that arises because our wants are unlimited but the resources to fulfil them are limited?

• Profit

• Supply

• Scarcity

• Sustainability

• Efficiency

What are the factors of production?

• Money, land, capital, and labour

• Resources, needs, wants, and profit

• Needs, goods, services, and capital

• Land, labour, capital, and enterprise

• Money, goods, wants, and labour

What is the definition of profit?

• The resources used to produce goods

• The money required for survival

• The production of goods and services

• The desires people have for non-essential items

• The amount of money a business earns after paying expenses