What is the main focus of economics as a subject?

• How to make money fast
• How people use resources to fulfill their wants
• How to design new technology
• How to grow food

Scarcity means that resources are __________.

• unlimited
• limited
• unwanted
• expensive

Microeconomics studies the economy as a whole.

Which of the following is an example of a 'need'?

• Smartphone
• Designer shoes
• Food
• Sports car

A trade-off always involves giving up one thing to get another.

Which of the following is NOT one of the three basic economic questions?

• What goods and services are to be produced?
• How are goods and services to be produced?
• Who will consume these goods and services?
• How much money should people save?

What is the main difference between 'needs' and 'wants'?

• Needs are expensive; wants are cheap.
• Needs are for adults; wants are for children.
• Needs are required for survival; wants are not.
• Needs are always food; wants are always toys.

Which of the following best describes a 'planned economic system'?

• Individuals decide everything
• The government controls most decisions
• Only businesses make decisions
• No one makes any decisions

'Unlimited wants and limited resources' is a basic economic problem.

In economics, making a choice always involves an opportunity cost.

Which of the following is a characteristic of a capitalist system?

• Government owns all resources
• No private property
• Private ownership of resources
• Prices are set by the government

Who usually decides how goods and services are produced in a planned economy?

• The government
• Consumers
• Private companies
• Foreign investors

Which of the following best defines economics?

• Study of money only
• Study of how people use resources to satisfy wants
• Study of only government policies
• Study of only business profits

A mixed economic system has both government and private sector involvement.

In economics, what is the main reason people have to make choices?

• Scarcity
• Abundance
• Popularity
• Luck