Unit 1 Econ test

What is scarcity?

• The abundance of resources

• The fundamental problem facing all societies due to not having enough resources

• The study of economics

• A way of expressing a need.

Define economics.

• Economics is the study of how people try to satisfy what appears to be unlimited wants and needs with limited/scarce resources.

• Economics is the study of ancient civilizations and their cultures.

• Economics is the study of celestial bodies and their movements.

• Economics is the study of languages and their evolution.

What are needs?

• A way of expressing a need

• Basic things for survival

• Unlimited wants

• Limited resources.

Which of the following is considered a luxury?

• Food

• Clothing

• Car

• Shelter

Which of the following is a necessity?

• Car

• Food

• Jewelry

• Yacht

What is the primary difference between luxuries and necessities?

• A) Luxuries are essential for survival, necessities are not.

• B) Necessities are essential for survival, luxuries are not.

• C) Both are equally important.

• D) Neither is important.

What is NOT one of the three main economic choices?

• What to produce?

• How to produce?

• For whom to produce?

• When to produce

How does 'How to produce' fit into the three main economic choices?

• It determines the method of production.

• It decides what goods to produce.

• It allocates resources to different sectors.

• It sets the price of goods.

Explain the significance of 'For whom to produce' in economic decision-making.

• It determines the allocation of resources among different groups in society.

• It identifies the most efficient production methods.

• It focuses on the environmental impact of production.

• It analyzes the historical context of economic systems.

What are the three main economics questions illustrated by the images of a baseball, manufacturing process, and a player hitting a baseball?

• What to produce, how to produce, for whom to produce

• Supply, demand, and equilibrium

• Cost, revenue, and profit

• Inflation, unemployment, and growth