Economics and Business Concepts Quiz

Why is the world of economics described as always changing?

• Because it only happens during the day

• Because the economic environment is always changing

• Because it is only about money

• Because it never affects people's lives

Which of the following best describes a business?

• A natural disaster

• A type of government

• An organization where people buy, sell, or work

• A scientific experiment

What does the term "economic scarcity" refer to?

• Having more resources than needed

• Having unlimited needs and wants but limited resources

• Having equal resources and needs

• Having no needs or wants

Why does scarcity create an unbalance in economies?

• Because resources are always increasing

• Because needs and wants are always limited

• Because there are unlimited needs and wants but only limited resources to satisfy them

• Because everyone has the same needs and wants

Imagine a country discovers a new source of oil. How might this affect the country's experience of economic scarcity?

• It would eliminate all scarcity forever

• It would increase the resources available, but needs and wants would still be unlimited

• It would decrease the needs and wants of the population

• It would make resources unlimited for everyone in the world

What is the main difference between needs and wants?

• Needs are for survival, wants are for enjoyment

• Needs are more expensive than wants

• Wants are always unhealthy

• Needs are always material things

Which resource type includes people who are employed by businesses and government?

• Land

• Labour

• Capital

• Enterprise

Which of the following is an example of a capital resource?

• Rainfall

• Doctor

• Commercial building

• Entrepreneur

Which type of resource involves individuals who organize and combine other resources to create value and take on risk?

• Land

• Labour

• Capital

• Enterprise

What must society do because of economic scarcity?

• Produce more goods than needed

• Choose some things and give up others

• Ignore limited resources

• Satisfy all wants and needs