G8 Economics - Basic Economic Problems

What is the primary focus of economics?

• Study of Allocation

• Study of Scarcity

• Study of Production

• Study of Consumption

What does scarcity refer to in economics?

• Unlimited resources

• Limited resources

• Abundant goods

• Infinite wants

Which of the following is considered a need?

• Smartphone

• Holiday

• Luxury car

• Food

What are the four factors of production?

• Labor, Capital, Services, Resources

• Land, Labor, Money, Goods

• Land, Labor, Capital, Enterprise

• Land, Goods, Services, Money

Which of the following is an example of an economic good?

• Air

• Cars

• Sunlight

• Water

What is opportunity cost?

• The cost of production

• The value of the next best alternative

• The price of goods

• The cost of labor

How do families prioritize their spending according to scarcity?

• By buying luxury items first

• By prioritizing essential needs

• By spending equally on all wants

• By ignoring needs

What distinguishes free goods from economic goods?

• Free goods are abundant

• Economic goods have no price

• Economic goods are free

• Free goods are scarce

Which factor of production includes human effort and skills?

• Enterprise

• Capital

• Labor

• Land

What is the relationship between wants and needs?

• Wants are essential for survival

• Wants are limitless while needs are finite

• Needs are basic requirements for survival

• Needs are desires for improved life