1.2 ~ Economic Decisions.Economic Systems

Soil, minerals, air, water, and coal are all examples of

• natural resources
• Conservation
• recycling

Oil, natural gas, and coal are called ________resources.

• fossil fuels
• conservation
• natural

Johnny has $50 and wants to buy a pair of Nike Shoes that cost $95.  He has to settle for a pair of Sketchers for $45.  In economic terms, Johnny is facing the problem of: 

• Shortage
• Scarcity 
• Unemployment 
• Marginal costs

 The difference between a good and a service is that:

• Goods are available in unlimited quantities and services are not.
• Goods are tangible and services are not.
• Services are available in unlimited quantities and goods are not.
• Goods help satisfy unlimited wants and services do not.

A service is something that something that someone does for you. Which one is a service?

• You get a hair cut.
• You go shopping at Walmart and purchase a new game system.
• You  visit your doctor and buy a A set of false teeth.

A good is something you buy and consume.  Which of the below is a good?.

• Sara visited the dentist for a checkup and it cost $25.
• You take cruise to the Bahamas.
• Your Mom takes you to Pizza Hut and you buy pizza to eat.
• Your pay a visit to the PA State Museum and see the Dinosaur Exhibit.

A service is something that someone does for you.   A good is a something you buy and consume. Tell which is a good AND a service.

• You buy a book and the author signs it.
• You get a hair cut.
• You won a book at the book fair.
• Your brother sells you his old bike.

A good is something you buy and consume. Tell which is a good:

• You buy cookies from Mrs. Greenwood in the cafeteria. 
• Mrs. Jones ask you to wash the tables.
• You hire someone to braid your hair.
• You ask a friend to shampoo your living room carpet.

What is the fundamental problem of every society?

• labor costs
• scarcity
• economic interdependence
• market fluctuation

________ is the most basic economic problem.

• Scarcity
• Labor
• Greed
• Capital