Economics Test 1

Question 1

Consumers have two basic desires

Answer 1

Wants and Needs

Question 2

____ are desires that can be satisfied by consuming a good or service

Answer 2

wants

Question 3

____ are things such as food, clothing, and shelter, that are necessary for survival.

Answer 3

needs

Question 4

____ is the situation that exist when there are not enough when there are not enough resources to meet human wants

Answer 4

Scarcity

Question 5

______ is the study of how people choose to use scarce resources to satisfy their wants

Answer 5

economics

Question 6

Economics involve:

Answer 6

1. Examining how individuals, business, gov and societies chose to use scarce resources to satisfy their wants
2. organizing analyzing and interpreting data about those economic behaviors
3. Developing theories and economic laws that explain how the economy works and to predict what might happen in the future

Question 7

____ is central to the use of scarce resources

Answer 7

choice

Question 8

____ affects which goods are made and which services are provided

Answer 8

Scarcity

Question 9

_____ are physical objects that can be purchased.

Answer 9

Goods

Question 10

_____ are work that one person performs for another for payment

Answer 10

services

Question 11

_____ is a person who buys goods or services for personal use

Answer 11

Consumer

Question 12

____ is a person who makes goods or produces services

Answer 12

Producer

Question 13

Scarcity requires every society to address three basic economic question

Answer 13

• What will be produced
• How will it be produced
• For whom will it be produced

Question 14

The scarcity economic questions involves not only what to produce but also how much to _______

Answer 14

produce

Question 15

Societies have to decide exactly how they are going to get these goods and services to people

Answer 15

.