Personal Finance Vocab Quiz #1

What term describes the condition that exists because human wants are unlimited, but resources are limited?

• Opportunity Cost

• Scarcity

• Capital

• Resource Allocation

Who is defined as a person who buys or uses goods and services?

• Producer

• Entrepreneur

• Consumer

• Labor

Which of the following is NOT considered a basic need for survival?

• Food

• Shelter

• Healthcare

• Smartphone

What are physical objects that can be purchased and used to satisfy wants and needs called?

• Services

• Goods

• Capital

• Labor

What is the value of the next best alternative that is given up when a choice is made?

• Scarcity

• Opportunity Cost

• Resource Allocation

• Entrepreneurship

Which term refers to the study of how individuals and societies use limited resources to satisfy unlimited wants?

• Economics

• Labor

• Capital

• Producer

Which of the following best describes "labor" in economics?

• Money used to buy goods

• Physical and mental effort used to produce goods and services

• Machines used in production

• Natural resources

Which of the following is an example of a service?

• A car

• A haircut

• A computer

• A loaf of bread

If a business owner decides to use $10,000 to buy new machinery instead of hiring more workers, what economic concept does this decision illustrate?

• Scarcity

• Opportunity Cost

• Needs

• Goods

A farmer uses soil, water, and minerals to grow crops. Which factor of production is primarily being utilized?

• Labor

• Capital

• Land

• Entrepreneurship