Economic Activity

What is the main economic problem?

• to many resources

• not enough needs

• scarcity

• All of the Above

What does scarcity mean?

• People are scared.

• There is not enough of something.

• Too much of something.

• None of the above.

What is unlimited and endless in economics?

• resources

• raw materials and labor

• needs and wants

• goods and services

What is limited in economics?

• needs

• resources

• wants

• All of the above.

Because of the scarcity, what do we have to make?

• choices

• money

• products

• Noneoftheabove.

Every time we make an economic choice, what two things occur?

• A profit and a loss.

• A benefit and profit.

• A benefit and a cost.

• None of the above.

How is the value of each purchase or choice we make decided?

• By looking at the benefit.

• By looking at the missed opportunity.

• By looking only at the monetary cost.

• None of the above

What does opportunity cost mean?

• It is what a person gives up when they make a choice.

• It is the idea that scarcity is an economic problem.

• It is that choices have benefits.

• None of the above.

We have a limited amount resources but there is an endless amount of needs and wants

• True

• False

Because of the economic problem, people and governments don’t have to make many decisions in how best to deal with the scarcity.

• True

• False