Basic Economic Concepts

What is the definition of scarcity in economics? Fill in the blank: Scarcity is the condition that exists when ________ wants exceed ________ resources.

• unlimited; limited

• limited; unlimited

• limited; limited

• unlimited; unlimited

Which of the following is a key idea related to scarcity?

• Scarcity does not require choices.

• Because scarcity exists, we must make choices.

• Scarcity means there are unlimited resources.

• Scarcity is temporary.

Which of the following is NOT a criterion for scarcity?

• Must be limited.

• Must be desirable.

• Must be unlimited.

• Must be rare.

Which of the following is an example of scarcity?

• Having enough time to finish everything.

• Students can’t get enough rest once school/work starts.

• Unlimited supply of oil.

• Everyone has high-paying skills.

True or False: Scarcity and shortage mean the same thing.

• True

• False

What is the definition of economics? Fill in the blank: Economics is the study of how individuals, businesses, and societies make choices to satisfy wants/needs in the face of ________.

• scarcity

• abundance

• certainty

• ignorance

Why is the study of economics important?

• It helps us avoid making choices.

• Every decision (work, play, spending, saving) involves trade-offs.

• It eliminates scarcity.

• It only applies to businesses.

What are the four factors of production needed to make goods and services?

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

• Computer

• Wind

• Teacher

• Oven

Labor (Human Resources) refers to ________.

• Human time and effort (physical + mental)

• Natural resources used in production

• Machinery and equipment used in factories

• Money invested in a business