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Questions and Answers
What is the definition of wants in economics?
The desire for goods and/or services.
Which of the following is an example of a physical want?
What are human resources in economics?
Skills, labor, and efforts that individuals contribute to production.
Match the types of resources with their definitions:
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Scarcity refers to the unlimited availability of resources.
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What is opportunity cost?
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Which branch of economics focuses on individual agents such as households and firms?
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What is economics defined as?
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Opportunity costs only apply to financial decisions.
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Study Notes
Wants and Needs
- Wants are desires for goods and/or services.
- Goods are tangible products, services are intangible.
- Physical wants are basic necessities for survival, like air, water, and food.
- Psychological wants are desires for things that improve life, but aren't essential.
Resources
- Resources are the inputs used to produce goods and services.
- Human resources are skills, labor, and effort.
- Capital resources are man-made tools and facilities, such as factories.
- Natural resources are raw materials obtained from nature, such as land, forests, and minerals.
Scarcity
- Scarcity is the limited availability of resources relative to unlimited human wants.
- Scarcity is a fundamental principle of economics.
- Scarcity means there is a constant challenge to fulfill wants.
Decision Making
- Scarcity forces individuals and societies to make choices.
- Choices are required to prioritize wants based on available resources.
Opportunity Cost
- Opportunity cost is the value of the next best alternative foregone when a choice is made.
- Every decision carries opportunity costs.
- Understanding opportunity costs helps with making informed economic decisions.
Fundamentals of Economics
- Economics studies human behavior in allocating scarce resources to satisfy wants.
- Microeconomics focuses on individual agents, their decision-making, and interactions in specific markets.
- Macroeconomics analyzes the economy as a whole, studying factors like growth, inflation, and unemployment.
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Description
This quiz explores fundamental concepts in economics, including wants and needs, resources, scarcity, decision-making, and opportunity cost. Test your understanding of how these principles interact in the economic landscape. Ideal for students learning economics basics.
