Economics Pretest

Define Economics...

• The study of how people get rich.

• The study of government spending.

• The study of how people balance unlimited wants with limited resources.

• The study of how people interact with the environment.

The Basic Economic Problem is...

• People

• Debt

• Money

• Scarcity

Scarcity occurs when...

• unlimited needs and wants outweigh limited resources.

• people run out of money.

• a surplus of inventory.

• people are afraid of the economy.

What is an Opportunity Cost?

• A tariff

• Cost of the next best alternative use of resources.

• A cost to have access to an opportunity.

A person who starts a business to produce a new product in the marketplace is known as...

• a manager

• an entrepreneur

• an economist

• a shark

Supply Requires...

• Producing what consumers want.

• Materials needed for a project.

• Warehouse stores like Costco

Demand is....

• A request made by your mom

• What people require of you

• What consumers want

• Rules and Regulations

Macro-economics...

• focuses on individual issues in the economy.

• examines the workings and problems of the economy as a whole.

• means small.

• means big

What are products we buy called?

• services

• economy

• goods

• consumer

What is the production, distribution, and consumption of products and services?

• producer

• consumer

• goods

• economy