Basic Economic Concepts Quiz

What is the primary focus of economics?

• Study of historical events

• Study of weather patterns

• Study of animal behavior

• Study of resources and decision-making

What is a need?

• An optional purchase

• Something you desire

• Basic requirement for survival

• A luxury item

Which of the following is an example of a want?

• Water

• Food

• Shelter

• Toys

What are resources?

• Things that cannot be used

• Items that are always free

• Only natural materials

• Inputs required to create outputs

What type of resource is water classified as?

• Human resource

• Economic resource

• Manufactured resource

• Natural resource

What is opportunity cost?

• The cost of a product

• The next best alternative forgone

• The total money spent

• The price of a service

Which of the following is a renewable resource?

• Minerals

• Trees

• Oil

• Gold

What does consumption refer to?

• The production of goods

• The use of goods and services

• The exchange of money

• The sale of products

What is a market?

• A location for manufacturing

• A type of economic theory

• A place where buyers and sellers meet

• A place where goods are stored

What does demand refer to?

• The amount of product available

• The quantity of a product desired by buyers

• The cost of production

• The price of a product