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