Economics Quiz

Scarcity is the condition where wants exceed _____ resources.

• The unlimited availability of resources

• limited

• The concept of free goods and services

• The ability to produce without limits

Goods are different from services because:

• Goods are physical items, while services are actions performed for others

• Goods and services are the same thing

• Services are always cheaper than goods

• Only services contribute to the economy

A trade-off in economic decision-making involves _____.

• Giving up one benefit in order to gain another

• An increase in the availability of resources

• The price of an item decreasing over time

• A government program to increase employment

Productive resources include _____

• Human, natural, and capital resources

• Only raw materials used in production

• Goods and services purchased by consumers

• Money and stocks invested in businesses

An example of increasing productivity is producing more goods using the same amount of _____

• Hiring more workers without changing output

• Producing more goods using the same amount of resources

• Increasing wages without increasing production

• Reducing the number of machines used in a factory

(a)   occurs because there are limited resources but unlimited wants.

A (a)   happens when you give up one option in order to gain something else.

Increasing (a)   means making more goods with the same amount of resources.

(a)   are the inputs used to make all goods and services.

The process of (a)   is necessary when choosing between different economic alternatives.