Economics-Scarcity and Choices

What is the fundamental economic problem that arises from limited resources?

• Utility

• Scarcity

• Opportunity Cost

• Trade-off

Which of the following is considered a need?

• Designer shoes

• Food

• Netflix subscription

• Concert tickets

What term describes goods that last three years or more?

• Capital goods

• Consumer goods

• Durable goods

• Nondurable goods

What is the study of choices people make to satisfy their unlimited wants?

• Economics

• Scarcity

• Wealth

• Value

Which of the following is an example of a nondurable good?

• Clothing

• Automobile

• Furniture

• Machine

What happens to prices when a product is limited in availability?

• They decrease

• They remain the same

• They fluctuate randomly

• They increase

What is the term for goods and services that people consume beyond what is necessary for survival?

• Resources

• Scarcity

• Wants

• Needs

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

• Clothing

• Machine

• Haircut

• Bread

What is the main reason why all societies face scarcity?

• Low supply

• Unlimited resources

• Limited resources

• High demand

What is the 'diamond-water paradox'?

• Diamonds are cheaper than water

• Scarcity affects value

• Water is more valuable than diamonds

• Diamonds are more useful than water