Unit 1: Introduction to Economics
14 Questions
4 Views

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to Lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What is scarcity in economics?

  • The absence of wants and needs
  • The problem of having limited resources with unlimited wants and needs (correct)
  • The equal distribution of resources to satisfy wants and needs
  • The problem of having unlimited resources with limited wants and needs

How is 'choice' defined in economics?

  • Unlimited access to resources to satisfy wants and needs
  • Deciding to limit wants and needs to match available resources
  • Equal distribution of resources among wants and needs
  • Deciding how to use limited resources to satisfy wants and needs (correct)

What does 'rational self-interest' refer to in economics?

  • Ignoring personal benefit in decision making
  • Making decisions solely for the benefit of others
  • Acting irrationally in self-interest
  • Making sensible choices based on what is best for oneself (correct)

What is the study of economics primarily concerned with?

<p>How people make rational self-interest choices in using limited resources to satisfy wants and needs (A)</p> Signup and view all the answers

What were some early forms of money?

<p>Shells, barley, and precious metals (D)</p> Signup and view all the answers

What is the function of money as a 'store of value'?

<p>Money is used for saving for future spending (C)</p> Signup and view all the answers

How does product pricing affect consumer choice and a business?

<p>If prices are too high, customers will likely go to another store (B)</p> Signup and view all the answers

What is a market?

<p>Places where people exchange products (D)</p> Signup and view all the answers

Who are the two main players in a market?

<p>Sellers and buyers (A)</p> Signup and view all the answers

How does competition among sellers affect prices?

<p>It decreases a product’s price (B)</p> Signup and view all the answers

What are the three basic market structures?

<p>Pure competition, oligopoly, and monopoly (B)</p> Signup and view all the answers

What is an advantage of a pure competition market?

<p>Pressure on sellers to provide better products and service (A)</p> Signup and view all the answers

What is the structure of a monopoly market?

<p>One seller with complete control over the price and supply (C)</p> Signup and view all the answers

What are the results of barriers to market entry?

<p>Market barriers reduce competition and generally result in higher product prices (B)</p> Signup and view all the answers

Flashcards

Scarcity in Economics

The problem of having limited resources with unlimited wants and needs.

Choice in Economics

Deciding how to use limited resources to satisfy wants and needs.

Rational Self-Interest

Making sensible choices based on what is best for oneself.

What does economics study?

How people make rational self-interest choices in using limited resources to satisfy wants and needs.

Signup and view all the flashcards

Money as a Store of Value

Things used for saving for future spending.

Signup and view all the flashcards

Product Pricing Effect

If prices are too high, customers will likely go to another store.

Signup and view all the flashcards

What is a market?

Places where people exchange products.

Signup and view all the flashcards

Who are the main players in a market?

Sellers and buyers.

Signup and view all the flashcards

Competition Among Sellers

It decreases a product’s price.

Signup and view all the flashcards

What are the three market structures?

Pure competition, oligopoly, and monopoly.

Signup and view all the flashcards

Advantage of Pure Competition

Pressure on sellers to provide better products and service.

Signup and view all the flashcards

Structure of a Monopoly Market

One seller with complete control over the price and supply.

Signup and view all the flashcards

Results of Barriers to Market Entry

Market barriers reduce competition and generally result in higher product prices.

Signup and view all the flashcards

More Like This

Use Quizgecko on...
Browser
Open
Browser
Browser