Economics Chapter 1 Test

Desires that can be satisfied by consuming a good or service is called __________.

• want

• need

• scarcity

• consumer

Food, clothing, and shelter that are necessary for survival are called __________.

• wants

• needs

• goods

• factors of production

The situation that exists when there are not enough resources to meet human wants is called ______.

• wants

• needs

• scarcity

• producers

Physical objects that can be purchased are called _________.

• goods

• services

• consumers

• wants

Work that one person performs for another for payment is called _____________.

• production

• services

• labor

• entrepreneur

A person who buys goods or services for personal use is called ___________.

• entrepreneur

• producer

• consumer

• constitute

A person who makes goods or provides services is called a(n) ___________.

• consumer

• apprentice

• entrepreneur

• producer

An incentive is something that...

• you receive after having success

• you need when you open a bank account
• motivates you to do something
• you accomplish at your job

___________ is the study of how people and nations use their limited resources to attempt to satisfy wants and needs.

• sociology
• biology
• economics
• finance

The alternative a person gives up when they make a choice

• incentive

• service

• trade-off

• return