Basic economic concepts

What is the difference between needs and wants?

• Needs are things we enjoy, wants are things we must have.

• Needs are things we must have to survive, wants are things we would like to have.

• Needs are optional, wants are essential.

• Needs and wants are the same.

Which of the following is an example of a need?

• Flash sports car

• Summer holidays

• Water

• iPhone

Which of the following is considered a service?

• Food

• Clothing

• Dentist filling teeth

• Flash sports car

Who are consumers?

• People who produce goods

• People who manufacture goods

• People who consume goods and services

• People who sell goods

What is an example of a producer?

• A person buying groceries

• A dentist filling teeth

• A consumer using a service

• A person enjoying a holiday

What is opportunity cost a result of?

• Abundance

• Scarcity

• Wealth

• Inflation

What does opportunity cost represent?

• The money you earn

• The time you save

• What you give up when choosing one option over another

• The resources you gain

In the example given, what is the opportunity cost of buying a movie ticket?

• The money spent on the ticket

• The time spent watching the movie

• The game you could have bought instead

• The enjoyment of the movie

Which of the following best describes a producer?

• Someone who buys goods

• Someone who saves money

• Someone who provides goods or services

• Someone who consumes goods

What is an example of a want?

• Food

• Water

• Shelter

• Luxury watch