Economics

Which of the following groups are confronted with the problem of scarcity?

• governments

• businesses

• people

• all of these

Which of the following items would best fulfill a need?

• automobile

• food

• shoes

• a Play Station

Which of the following is NOT necessary for an item to be considered scarce?

• be limited in quantity

• be desirable

• be inexpensive

• have more than one valuable use

Which of the following is a good?

• A car

• Having your tax returns done

• A haircut

• A pedicure

Which of the following is a service?

• Having your taxes calculated

• A car

• A baseball bat

• A water hose

The best word to describe scarcity is ____________.

• sunshine

• choices

• air

• unlimited wants

The reason that scarcity exists is because consumers _______________.

• have unlimited wants, but limited resources.

• don’t produce items efficiently

• have a limited number of wants, but endless resources

• have limited wants, resources, but limited wants.

What is the best way to define the word “want”?

• Most wants are limited.

• People will eventually be satisfied with what they have.

• Wants are unlimited.

• Wants are fixed and do not change.

The study of how people make choices when confronted with scarcity is _____________.

• economics

• unlimited wants

• unlimited resources

• capital

Physical products that can be purchased are called _______.

• goods

• services

• wants

• needs