Economics, Review Test 1
  • 1. What does the following definition describe? The study of how a society uses its limited resources to satisfy its unlimited wants.
A) productivity
B) sustainability
C) economics
D) social science
  • 2. Needs and wants are diverse and ...
A) unlimited.
B) common.
C) satisfying.
D) scarce.
  • 3. What is a problem common to all societies?
A) resources
B) scarcity
C) productivity
D) profit
  • 4. Things which are essential to maintain life are referred to as ...
A) needs.
B) goods.
C) wants.
D) services.
  • 5. An example for a collective want is ...
A) a footpath.
B) shelter.
C) a new pair of jeans.
D) a pizza shop.
  • 6. Scarcity creates the need for ...
A) diverse capital goods.
B) consumption of goods and services.
C) choice.
D) final products.
  • 7. What is an economic good?
A) goods which are used to make other goods and services
B) goods which households buy
C) anything which has a price
D) final products
  • 8. Goods that are used in the production process along with other resources are called ...
A) capital goods.
B) consumer goods.
C) economic goods.
D) free goods.
  • 9. What name is given to the economy of developing (not-developed and 'primitive') societies?
A) rural economy
B) poor economy
C) subsistence economy
D) basic economy
  • 10. What is the 'secret' which enables a society to start improving its' way of life?
A) producing more than you need just to survive
B) starting to consume more
C) using all available resources
D) reducing wants to satisfy the needs
  • 11. What name is given to the process by which each family member specializes in what it does best?
A) producing a surplus
B) productivity
C) meeting all our needs and wants
D) division of labour
  • 12. What is another word for division of labour?
A) scarcity
B) resources
C) specialization
D) production
  • 13. Who are the people that decide to buy things?
A) managers
B) consumers
C) economists
D) producers
  • 14. If you won $10 million in Lotto, would you be free from economic scarcity?
A) probably
B) no
C) not sure
D) yes
  • 15. In the cartoon story, how did the village start to improve its' way of life?
A) inventing things
B) satisfying their needs and wants
C) working harder and faster
D) creating a surplus and specialization
  • 16. A car is an example of ...
A) a service.
B) a need.
C) a non-durable consumer good.
D) an economic good.
  • 17. Consumers ...
A) make things.
B) buy things.
C) need more than they want.
D) have unlimited resources.
  • 18. As consumers, our problem is that we ...
A) want more than we can afford.
B) need more than we can afford.
C) make more than we have to.
D) have unlimited resources.
  • 19. Water is a good example of a ...
A) need.
B) an economic good.
C) a consumer good.
D) want.
  • 20. If I have $20, I most likely can buy a new ...
A) Xbox.
B) book.
C) surfboard.
D) mobile phone.
  • 21. As a student at High School, I am a ...
A) producer.
B) user of resources to make capital goods.
C) consumer of a service.
D) trader.
  • 22. Complete the sentence with the best word: In order to make products we need other things that we call ...
A) goods and services.
B) final products.
C) resources.
D) free goods.
  • 23. What statement about economics is correct?
A) Scarcity is only a problem for poor countries.
B) Economies have become less complex throughout history.
C) All goods produced by a society are consumer goods.
D) Economics is about the decisions that we make every day
  • 24. What is 'at the heart of all human progress and prosperity'?
A) the division of labour and specialization
B) using resources for daily survival
C) the availability of consumer goods and services
D) limited needs and wants
  • 25. What characteristics of wants are described in this sentence: Income is limited, therefore not all wants can be satisfied.
A) Wants are complementary.
B) Wants are recurrent.
C) Wants are competitive.
D) Wants are changeable.
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