12 Questions
What is the difference between a need and a want?
A need is something you cannot live without, while a want is something you would like to have but don't necessarily need to survive.
Which of the following is an example of a capital resource?
A computer
What is the opportunity cost of choosing to buy a new car?
The other things you could have bought with the same amount of money
Which of the following is an example of a service?
A haircut
What is the difference between an import and an export?
Imports are goods purchased from other countries, while exports are goods sold to other countries.
What is the relationship between supply and demand?
Supply and demand are inversely related, meaning that as supply increases, demand decreases.
What economic concept refers to the freedom of private businesses without government control?
Market economy
Which term describes businesses that make or sell similar products?
Industry
What does the term 'voluntary exchange' refer to in an economy?
Exchanging goods or currency willingly
Which invention is attributed to Thomas Edison?
Lightbulb
What does industrialization involve?
Building more factories and increasing production speed
What is the primary purpose of a price system in a market?
Show how much customers value goods
Test your knowledge of basic economics terms definitions such as needs, wants, goods, services, and consumers. Learn the distinctions and meanings of these fundamental concepts.
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