Introduction to Economics Review Guide

What is the definition of Economics?

• the study of how people choose to use limited resources to meet their needs and wants

• the study of ancient civilizations and their cultures

• the process of creating works of art and literature

• the study of weather patterns and climate changes

What is the definition of Needs?

• things humans must have to survive such as food, water and shelter

• things people want for entertainment

• luxury items that are not necessary for survival

• optional activities for leisure

What is the definition of Goods?

• physical objects that are bought and sold. They include things like cars, food, and clothes

• services provided by businesses to consumers, such as haircuts and repairs

• money used in transactions to purchase products and services

• the process of advertising products to potential customers

What is the definition of Services?

• actions that one person pays another to do for them. Services include things like medical care, teaching, fire-fighting, and baby-sitting.

• physical objects that can be touched and owned, like cars or books.

• natural resources found in the environment, such as water or minerals.

• government rules that control how businesses operate.

What is the definition of Producers?

• Goods are manufactured by turning raw materials/ resources into finished products

• People who consume goods and services for personal use

• A place where goods are bought and sold

• A person who provides services such as teaching or medical care

What is an example of a Capital Resource?

• Delivery Truck

• Apple

• Oil

• Lawyer

What is an example of a Human Resource?

• Truck driver

• Water pump

• Solar energy

• Oven

What is an example of a Natural Resource?

• Truck driver

• Water pump

• Solar energy

• Oven

Which of the following best explains the difference between renewable and non-renewable natural resources?

• Renewable resources can be replenished naturally, while non-renewable resources are finite and cannot be replaced easily.

• Renewable resources are always man-made, while non-renewable resources are always natural.

• Non-renewable resources are more environmentally friendly than renewable resources.

• Renewable resources are only found in oceans, while non-renewable resources are found on land.

Tim is a cook at a pizza shop in Bel Air. Tim would be described as which type of resource?

• Human

• Natural

• Capital

• Entrepreneur