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Economics, Review Test 1
Contributed by: Marzohl
  • 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) social science
D) productivity
  • 2. Needs and wants are diverse and ...
A) common.
B) satisfying.
C) unlimited.
D) scarce.
  • 3. What is a problem common to all societies?
A) productivity
B) scarcity
C) profit
D) resources
  • 4. Things which are essential to maintain life are referred to as ...
A) services.
B) needs.
C) goods.
D) wants.
  • 5. An example for a collective want is ...
A) a pizza shop.
B) a footpath.
C) a new pair of jeans.
D) shelter.
  • 6. Scarcity creates the need for ...
A) diverse capital goods.
B) consumption of goods and services.
C) final products.
D) choice.
  • 7. What is an economic good?
A) goods which are used to make other goods and services
B) goods which households buy
C) final products
D) anything which has a price
  • 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) subsistence economy
B) basic economy
C) rural economy
D) poor economy
  • 10. What is the 'secret' which enables a society to start improving its' way of life?
A) using all available resources
B) reducing wants to satisfy the needs
C) starting to consume more
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) meeting all our needs and wants
B) producing a surplus
C) division of labour
D) productivity
  • 12. What is another word for division of labour?
A) scarcity
B) resources
C) production
D) specialization
  • 13. Who are the people that decide to buy things?
A) consumers
B) economists
C) producers
D) managers
  • 14. If you won $10 million in Lotto, would you be free from economic scarcity?
A) not sure
B) probably
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) satisfying their needs and wants
C) working harder and faster
D) inventing things
  • 16. A car is an example of ...
A) an economic good.
B) a need.
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) need more than we can afford.
C) make more than we have to.
D) want more than we can afford.
  • 19. Water is a good example of a ...
A) a consumer good.
B) want.
C) an economic good.
D) need.
  • 20. If I have $20, I most likely can buy a new ...
A) book.
B) mobile phone.
C) surfboard.
D) Xbox.
  • 21. As a student at High School, I am a ...
A) trader.
B) user of resources to make capital goods.
C) producer.
D) consumer of a service.
  • 22. Complete the sentence with the best word: In order to make products we need other things that we call ...
A) resources.
B) free goods.
C) goods and services.
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) Scarcity is only a problem for poor countries.
D) All goods produced by a society are consumer goods.
  • 24. What is 'at the heart of all human progress and prosperity'?
A) the division of labour and specialization
B) limited needs and wants
C) using resources for daily survival
D) the availability of consumer goods and services
  • 25. What characteristics of wants are described in this sentence: Income is limited, therefore not all wants can be satisfied.
A) Wants are changeable.
B) Wants are recurrent.
C) Wants are competitive.
D) Wants are complementary.
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