Podcast
Questions and Answers
What does the term 'scarcity' refer to in economics?
What does the term 'scarcity' refer to in economics?
- The temporary absence of goods in the market
- A situation where resources are limited but desires are unlimited (correct)
- The unavailability of a good or service
- A surplus of resources leading to excessive production
Which of the following best describes the difference between 'wants' and 'needs'?
Which of the following best describes the difference between 'wants' and 'needs'?
- Wants can be satisfied by consuming goods and services, while needs are basic requirements for survival. (correct)
- Wants are unlimited, while needs are limited.
- Needs can change over time, whereas wants remain constant.
- Wants are essential for survival, while needs are optional desires.
How does the concept of 'guns or butter' relate to economics?
How does the concept of 'guns or butter' relate to economics?
- It symbolizes the choices between military spending and consumer goods. (correct)
- It emphasizes the importance of car production over military equipment.
- It illustrates the priority of public health over national security.
- It represents the trade-off between education and government spending.
What is the primary focus of macroeconomics?
What is the primary focus of macroeconomics?
What distinguishes a shortage from scarcity?
What distinguishes a shortage from scarcity?
Flashcards
Economics
Economics
The study of scarcity and choice in decision-making.
Scarcity
Scarcity
The limited nature of society's resources compared to unlimited wants.
Macroeconomics
Macroeconomics
The study of economics at a national level (output, unemployment).
Microeconomics
Microeconomics
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Wants vs. Needs
Wants vs. Needs
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