14 Questions
What is scarcity in economics?
The problem of having limited resources with unlimited wants and needs
How is 'choice' defined in economics?
Deciding how to use limited resources to satisfy wants and needs
What does 'rational self-interest' refer to in economics?
Making sensible choices based on what is best for oneself
What is the study of economics primarily concerned with?
How people make rational self-interest choices in using limited resources to satisfy wants and needs
What were some early forms of money?
Shells, barley, and precious metals
What is the function of money as a 'store of value'?
Money is used for saving for future spending
How does product pricing affect consumer choice and a business?
If prices are too high, customers will likely go to another store
What is a market?
Places where people exchange products
Who are the two main players in a market?
Sellers and buyers
How does competition among sellers affect prices?
It decreases a product’s price
What are the three basic market structures?
Pure competition, oligopoly, and monopoly
What is an advantage of a pure competition market?
Pressure on sellers to provide better products and service
What is the structure of a monopoly market?
One seller with complete control over the price and supply
What are the results of barriers to market entry?
Market barriers reduce competition and generally result in higher product prices
Test your knowledge of economic concepts with this worksheet on the introduction to economics. Learn about scarcity, the fundamental economic problem of limited resources and unlimited wants and needs. Fill in the blanks with your understanding of these key concepts.
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