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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) social science
C) productivity
D) sustainability
  • 2. Needs and wants are diverse and ...
A) scarce.
B) unlimited.
C) common.
D) satisfying.
  • 3. What is a problem common to all societies?
A) profit
B) resources
C) productivity
D) scarcity
  • 4. Things which are essential to maintain life are referred to as ...
A) wants.
B) services.
C) needs.
D) goods.
  • 5. An example for a collective want is ...
A) shelter.
B) a footpath.
C) a new pair of jeans.
D) a pizza shop.
  • 6. Scarcity creates the need for ...
A) consumption of goods and services.
B) choice.
C) final products.
D) diverse capital goods.
  • 7. What is an economic good?
A) goods which households buy
B) goods which are used to make other goods and services
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) free goods.
B) capital goods.
C) economic goods.
D) consumer 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) reducing wants to satisfy the needs
B) using all available resources
C) producing more than you need just to survive
D) starting to consume more
  • 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) meeting all our needs and wants
D) productivity
  • 12. What is another word for division of labour?
A) production
B) scarcity
C) resources
D) specialization
  • 13. Who are the people that decide to buy things?
A) consumers
B) managers
C) producers
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) inventing things
B) creating a surplus and specialization
C) satisfying their needs and wants
D) working harder and faster
  • 16. A car is an example of ...
A) a non-durable consumer good.
B) a service.
C) an economic good.
D) a need.
  • 17. Consumers ...
A) buy things.
B) have unlimited resources.
C) make things.
D) need more than they want.
  • 18. As consumers, our problem is that we ...
A) make more than we have to.
B) want more than we can afford.
C) need more than we can afford.
D) have unlimited resources.
  • 19. Water is a good example of a ...
A) a consumer good.
B) an economic good.
C) want.
D) need.
  • 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) user of resources to make capital goods.
B) trader.
C) consumer of a service.
D) producer.
  • 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) resources.
C) free goods.
D) final products.
  • 23. What statement about economics is correct?
A) Economics is about the decisions that we make every day
B) Scarcity is only a problem for poor countries.
C) Economies have become less complex throughout history.
D) All goods produced by a society are consumer goods.
  • 24. What is 'at the heart of all human progress and prosperity'?
A) the availability of consumer goods and services
B) the division of labour and specialization
C) limited needs and wants
D) using resources for daily survival
  • 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 complementary.
D) Wants are competitive.
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