2.02 Economics Quiz

What is the study of how to meet unlimited, competing wants with limited resources called?

• Sociology

• Economics

• Psychology

• Anthropology

Which of the following is a desire for something that can only be satisfied by spending money?

• Noneconomic want

• Economic want

• Need

• Service

What are physical objects that are useful, scarce, and transferable called?

• Economic services

• Economic goods

• Natural resources

• Capital goods

Which of the following is NOT a classification of consumer products?

• Convenience

• Shopping

• Materials

• Specialty

What are the human and natural resources and capital goods used to produce goods and services called?

• Economic resources

• Consumer products

• Industrial products

• Economic services

What is scarcity?

• A condition resulting from the gap between limited resources and unlimited wants for goods and services

• The process of producing goods and services

• The economic process of trading one good/service for another

• The situation when supply is greater than demand

What does the law of demand state?

• The quantity of a good or service that sellers are able and willing to offer for sale varies directly with its price

• The quantity of a good or service that buyers are ready to buy varies inversely with its price

• The supply of a good or service will increase when demand is great

• The point at which the quantity supplied is equal to the quantity demanded

What is equilibrium in economic terms?

• The situation when demand is greater than supply

• The point at which the quantity supplied is equal to the quantity demanded

• The economic process of producing goods and services

• The economic process of trading one good/service for another

What happens to demand when the price of a product decreases?

• Demand for the item goes up

• Demand for the item goes down

• Supply of the item goes up

• Supply of the item goes down

What is the economic process of trading one good/service for another called?

• Consumption

• Production

• Exchange

• Distribution