SL1_Term 2_Defining Economics

What is the main focus of economics as a social science?

• How people choose among alternatives
• How to produce more resources
• How to eliminate scarcity
• How to manage wealth

What does scarcity mean in economics?

• Having unlimited resources
• The condition of having to choose among alternatives
• The ability to produce anything
• The availability of free goods

If resources were unlimited, what would happen to economics?

• It would become more complex
• It would cease to exist
• It would focus on wealth distribution
• It would study resource management

Why is air considered a scarce good?

• It is polluted by cars and factories
• It is free for everyone
• It has no alternative uses
• It is abundant and healthy

Which of the following is an example of a free good?

• Air
• Water
• Land
• Electricity

What must society do because of scarcity?

• Make choices about resource use
• Increase production of goods
• Eliminate all wants
• Focus only on free goods

What happens when we choose to use land for one purpose?

• We can use it for multiple purposes
• We must give up other potential uses
• It becomes a free good
• It increases the value of the land

Which of the following statements is true about scarcity?

• It only applies to physical goods
• It affects all resources and goods
• It is only a problem in developing countries
• It can be solved with technology

What is an example of a choice that involves scarcity?

• Choosing between two types of ice cream
• Deciding to watch a movie or read a book
• Both A and B
• None of the above

How does pollution relate to the concept of scarcity?

• It creates more resources
• It limits the quality of air, making it scarcer
• It has no effect on scarcity
• It makes air a free good