Economics Quiz: Scarcity and Choice

What is the definition of economics?

• A science that studies the Earth's physical structure

• A social science that studies how people with limited resources make choices

• A branch of mathematics dealing with numbers and calculations

• A study of ancient civilizations and their cultures

Which of the following is NOT a factor of production?

• Capital

• Land

• Labour

• Technology

What is the reward for the use of land in production?

• Rent

• Interest

• Wages

• Profit

What is the opportunity cost?

• The financial cost of a decision

• The price of the item we choose to buy

• All the other things we could have done with our resources

• The total cost of production

Which factor of production is associated with wages?

• Land

• Labour

• Capital

• Enterprise

What is a need?

• An item that is scarce and expensive

• A luxury item that improves quality of life

• Something essential for survival or important in daily life

• Something we would like to have but is not essential

What is the reward for enterprise?

• Interest

• Wages

• Profit

• Rent

What does scarcity imply in economics?

• Resources are abundant and unlimited

• Resources are only available to the wealthy

• Resources are evenly distributed among all people

• Resources are limited and have alternative uses

What is the economic term for the greatest benefit or satisfaction from limited resources?

• Utility

• Scarcity

• Opportunity cost

• Financial cost

Which of the following is an example of a want?

• Shelter

• A new mobile phone

• Clothing

• Food