Year 7 Economics Key Concepts Review

What does scarcity refer to in economics?

• Having unlimited resources

• Making decisions without consequences

• Limited resources to meet unlimited wants

• Choosing the best alternative

What is opportunity cost?

• The cost of producing goods

• The value of the next best alternative given up

• The price paid for a product

• The amount of money earned

Who are consumers?

• People who create goods

• Businesses that sell products

• Individuals who purchase goods and services

• Government agencies

What is the role of producers?

• To buy goods

• To regulate markets

• To create goods and services

• To consume products

What is a market?

• A place where only producers meet

• A location for government decisions

• Where buyers and sellers exchange goods and services

Which of the following is a business type?

• Consumer

• Corporation

• Entrepreneur

• Market

What does entrepreneurship involve?

• Avoiding risks

• Copying existing businesses

• Innovation and risk-taking

• Working for someone else

Which of the following is a need?

• Video games

• Water

• Smartphone

• Movie tickets

Which of the following is a want?

• Shelter

• Food

• Clothing

• Concert tickets

What are goods?

• Activities performed for payment

• Physical items that can be bought or sold

• Government services

• Digital downloads only