Business Economics | Topic 1, Focus Area 1, Lesson 1 Quiz

Which of the following best defines ECONOMICS

• the study of how individuals behave when it comes to satisfying their unlimited wants and needs with limited resources

• the study of how individuals behave when it comes to satisfying their limited wants and needs with unlimited resources

• the study of how individuals behave when it comes to satisfying their limited wants and needs with limited resources

• the study of how individuals behave when it comes to satisfying their unlimited wants and needs with unlimited resources

Match the following key terms:

• Scarcity

• not enough productive resources to satisfy people's unlimited wants

• Service

• the study of how people use their scarce resources to satisfy their unlimited wants

• Productive Resources

• An item you can see, feel, and touch that requires scarce resources to produce and satisfies human wants

• Economics

• The inputs used to produce the goods and services that people want

• Good

• Something you cannot see, feel, or touch that requires scarce resources to produce and satisfies human wants

Which of the following best describes The Economic Problem

• Although your wants, or desires, are virtually unlimited, the productive resources available to help satisfy these wants are scarce.

• Governments are always in debt and making bad financial decisions.

• Not enough people are educated in how the economy works.

• We have too many resources and not sure how to use them, so we just waste them.

Scarcity forces us to do what?

• Make choices

• Feel bad about what we buy

• To be afraid of everything

• To have everything we've ever wanted

Sort the following descriptions and examples to the correct Productive Resource

Groups:

(a) Human Resources

,

(b) Natural Resources

,

(c) Capital Goods

• Minerals

• "Gifts of nature"

• Labor

• Entrepreneurs

• Factories

• Land

• Machines

• animals

• Include all human creation used to produce goods and services.

• Trucks

• Cab Driver

• Human efforts, both physical and mental, used to produce goods and services.

• Tools

• Forest

• Car Salesman

• Brain Surgeon

• bodies of water

• Construction Worker

• Money

• Oil reserves