20 Questions
What is the main difference between needs and wants in economics?
Needs are essential for survival, while wants are not essential.
Which category of resources involves the plant and machinery used to make goods and services?
Capital resources
What problem arises due to the fact that needs and wants are unlimited while resources are limited?
Scarcity
Which of the following is considered a service in economics?
Watching a movie
What is opportunity cost in economics?
The cost of the next best alternative foregone when resources are used in production
How does the text describe the impact of nations' ability to satisfy needs and wants?
It results in vast differences in the standard of living of people around the world
What is an example of opportunity cost mentioned in the text?
Building new freeways and better healthcare
How have changes due to the Covid virus impacted local councils?
Placed pressure on them to upgrade and expand existing facilities
What has contributed to population growth in certain areas according to the text?
Immigration returning to pre-Covid levels
What do nations have to consider when making decisions about needs and wants according to the text?
Their options and which needs and wants to satisfy
What is the main distinction between needs and wants in economics?
Needs are essential for survival, while wants are not essential but desired.
Which category of resources includes the minerals in the ground, water supply, and trees and forests?
Natural resources
What problem arises due to the fact that needs and wants are unlimited while resources are limited?
Scarcity
Which of the following is an example of a want according to the text?
Overseas holiday
What does opportunity cost refer to in economics?
The next best alternative foregone when resources are used in production
How does the text describe the impact of varying abilities of nations to satisfy needs and wants?
It leads to differences in the standard of living around the world
How are local councils impacted by the changes due to the Covid virus according to the text?
They are under pressure to upgrade and expand their existing facilities
What do individuals or nations have to consider when making decisions about needs and wants?
Their options and the opportunity cost of each decision
What contributes to population growth in certain areas according to the text?
Return of immigration levels to pre-Covid levels
What is an example of opportunity cost mentioned in the text?
$50 spent on a video game rather than on better health care
Study Notes
Needs and Wants in Economics
- In economics, needs are essential goods and services required for survival, while wants are desirable goods and services that improve the quality of life.
Resources in Economics
- Capital resources involve plant and machinery used to make goods and services.
- Natural resources include minerals in the ground, water supply, and trees and forests.
Economic Problem
- The fundamental economic problem arises from the fact that needs and wants are unlimited, while resources are limited.
Service in Economics
- A service is an intangible commodity, such as education or healthcare.
Opportunity Cost
- Opportunity cost refers to the value of the next best alternative given up when choosing to allocate resources in a particular way.
- Example of opportunity cost: choosing to spend $100 on a concert ticket means giving up the opportunity to spend that $100 on a new video game.
Impact of Limited Resources
- The text states that the varying abilities of nations to satisfy needs and wants lead to differences in economic outcomes.
Decision-Making
- Individuals and nations must consider the opportunity cost of their choices when making decisions about needs and wants.
Population Growth
- Population growth in certain areas is contributed to by various factors, but the specific factors are not stated in the text.
Covid-19 Impact
- The changes due to the Covid-19 pandemic have impacted local councils, but the specific impact is not stated in the text.
Example of a Want
- A concert ticket is an example of a want, as it is a desirable good that improves the quality of life but is not essential for survival.
Test your knowledge of needs and wants in economics, and explore the concepts of necessities and desires. Understand the difference between essential needs and non-essential wants, and their impact on resource allocation.
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