Unit 1: Basic Economic Concepts QUIZ 1

What is the basic economic problem?

• Poverty

• Health problem

• Scarcity

Three basic economic questions are( choose three options)

• What to produce?

• How to produce?

• For whom to produce?

• Why to produce?

Needs can be defined as

• Something required for survival

• Something required to satisfy desire.

• Something that you desire to have

Scarcity may be defined as

• Unlimited resources and limited wants

• Limited resources and unlimited needs and wants

• Limited resources and limited needs and wants

Four factors of production are

• Land, Labor, Capital, Entrepreneur

• Land , Labor, Money, Entrepreneur

• Land , Labor, Capital, Machinery

Reward/ payment for land is

• Rent

• Interest

• Wages

Reward/ Payment for labor is

• Interest

• Wages

• Profit

Reward/ payment for capital is

• Wages

• Profit

• Interest

Reward/ Payment for entrepreneur is

• Profit

• wages

• Interest

Which one is not a definition of Economics

• The study of the choices that people make to satisfy their needs and wants from limited resources

• The study of the choices that people make to satisfy their needs and wants from limited resources

• The study of the choices that people make to satisfy their needs and wants from unlimited resources