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