Basic Economic Concepts Test Review

Front

Scarcity is best defined as

Back

The fact that people have unlimited wants and limited resources

Front

Resources (factors of production) are

Back

scarce for individuals and scarce for societies.

Front

Any resources that are made by humans, such as machines, and used to create other goods and services are called

Back

capital.

Front

Economics may best be defined as a

Back

study of choices people make in light of their desire for unlimited wants but the reality of limited resources.

Front

Approximately what percentage of the world's economies experience scarcity?

Back

100

Front

Why do households and societies face many decisions?

Back

resources are scarce.

Front

Guns and butter are used to represent the classic societal tradeoff between producing

Back

military or consumer goods.

Front

What is the best definition of a need?

Back

A fundamental necessity for life

Front

By choosing the Infiniti, the purchase is considered a ____________, while it is also considered a ____________.

Back

want/good

Front

All of the following are considered goods EXCEPT: Nike shoes purchased for the Red Terror’s football team, Brand new Reebok jerseys purchased for the soccer team, Recycled warm-up outfits handed down to the basketball team, A CPR training seminar for the swimming team.

Back

A CPR training seminar for the swimming team