Economics Chapter 1 Review

What is the best definition of a "need"?

• Something you would like to have

• Something you must have for survival

• A luxury item

• A non-essential item

Which of the following is an example of a "want"?

• Food

• Water

• Shelter

• Smartphone

Which of the following is a "good"?

• A haircut

• A car

• A legal consultation

• House cleaning

Which of the following is an example of a "service"?

• A book

• A meal

• A car wash

• A computer

"Scarcity" refers to the concept that:

• Resources are unlimited

• There is not enough of something for everyone

• Prices are always high

• Only luxury goods are hard to find

Economics is the study of:

• Wealth accumulation

• Human behavior

• How societies manage their scarce resources

• Stock markets

What is a "shortage"?

• A long-term scarcity of resources

• A temporary lack of supply

• A situation where demand exceeds supply permanently

• An oversupply of goods

An "entrepreneur" is someone who:

• Works for someone else

• Starts and runs their own business

• Manages government projects

• Is a skilled laborer

Which of the following are the "factors of production"?

• Labor, goods, services, capital

• Land, labor, capital, entrepreneurship

• Resources, scarcity, capital, needs

• Goods, services, trade-offs, opportunity costs

"Land" in economic terms refers to:

• The physical space where production happens

• All natural resources used to produce goods and services

• The value of property

• Urban areas