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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) productivity
B) sustainability
C) social science
D) economics
  • 2. Needs and wants are diverse and ...
A) common.
B) unlimited.
C) scarce.
D) satisfying.
  • 3. What is a problem common to all societies?
A) scarcity
B) resources
C) profit
D) productivity
  • 4. Things which are essential to maintain life are referred to as ...
A) wants.
B) goods.
C) needs.
D) services.
  • 5. An example for a collective want is ...
A) a new pair of jeans.
B) shelter.
C) a pizza shop.
D) a footpath.
  • 6. Scarcity creates the need for ...
A) diverse capital goods.
B) final products.
C) consumption of goods and services.
D) choice.
  • 7. What is an economic good?
A) goods which households buy
B) final products
C) anything which has a price
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) consumer 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) subsistence economy
C) rural economy
D) basic economy
  • 10. What is the 'secret' which enables a society to start improving its' way of life?
A) starting to consume more
B) producing more than you need just to survive
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) division of labour
C) productivity
D) meeting all our needs and wants
  • 12. What is another word for division of labour?
A) specialization
B) scarcity
C) resources
D) production
  • 13. Who are the people that decide to buy things?
A) managers
B) producers
C) consumers
D) economists
  • 14. If you won $10 million in Lotto, would you be free from economic scarcity?
A) not sure
B) probably
C) yes
D) no
  • 15. In the cartoon story, how did the village start to improve its' way of life?
A) satisfying their needs and wants
B) working harder and faster
C) creating a surplus and specialization
D) inventing things
  • 16. A car is an example of ...
A) an economic good.
B) a service.
C) a need.
D) a non-durable consumer good.
  • 17. Consumers ...
A) need more than they want.
B) make things.
C) have unlimited resources.
D) buy things.
  • 18. As consumers, our problem is that we ...
A) have unlimited resources.
B) make more than we have to.
C) want more than we can afford.
D) need more than we can afford.
  • 19. Water is a good example of a ...
A) a consumer good.
B) want.
C) need.
D) an economic good.
  • 20. If I have $20, I most likely can buy a new ...
A) surfboard.
B) mobile phone.
C) Xbox.
D) book.
  • 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) final products.
B) free goods.
C) goods and services.
D) resources.
  • 23. What statement about economics is correct?
A) Economics is about the decisions that we make every day
B) Economies have become less complex throughout history.
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 availability of consumer goods and services
C) the division of labour and specialization
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 changeable.
B) Wants are complementary.
C) Wants are recurrent.
D) Wants are competitive.
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