Having a limited quantity of resources to meet unlimited wants

What is the relationship between demand, supply, and price?

If demand increases, price increases; if supply increases, price decreases

What is the relationship between expenses, revenue, and profit?

Expenses and revenue can increase or decrease profit

What is the definition of profit?

Profit is the total revenue minus total expenses

What are the three basic economic questions societies must answer?

What goods and services should be produced?

What is the concept of specialization?

The process of focusing on producing a limited range of goods or services

What is the role of advertising in increasing demand and competition?

Advertising can increase demand and competition

What is the impact of competition on profit and production?

Competition can increase or decrease profit and production

What is the impact of resource prices on profit?

Higher resource prices decrease profit

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Economics Basics

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Questions 11

Answers

1
What is scarcity?
Having a limited quantity of resources to meet unlimited wants
Having an unlimited quantity of resources
Having an unlimited quantity of resources to meet unlimited wants
Having a limited quantity of resources to meet limited wants
2
What is the relationship between demand, supply, and price?
If demand increases, price decreases; if supply increases, price increases
Demand and supply are unrelated to price
If demand increases, price increases; if supply increases, price decreases
If demand decreases, price increases; if supply decreases, price decreases
3
What are the factors of production?
Producers, consumers, and competition
Land, labor, and capital
Goods, services, and money
Supply, demand, and price
4
What is the relationship between expenses, revenue, and profit?
Expenses and revenue can increase profit
Expenses and revenue can increase or decrease profit
Expenses and revenue have no impact on profit
Expenses and revenue can decrease profit
5
What is the definition of profit?
Profit is the total revenue multiplied by total expenses
Profit is the total revenue minus total expenses
Profit is the total revenue divided by total expenses
Profit is the total revenue plus total expenses
6
What are the three basic economic questions societies must answer?
Who uses or consumes those goods and services?
How should goods and services be produced?
What goods and services should be produced?
When should goods and services be produced?
7
What is inflation?
A general increase in prices
A decline in production over six or more months in a row
A general decline in prices
A lack of demand for goods and services
8
What is the concept of specialization?
The process of increasing capital to make more goods and services
The desire for a certain good or service
The ability and willingness to produce a good or service
The process of focusing on producing a limited range of goods or services
9
What is the role of advertising in increasing demand and competition?
Advertising can decrease demand and competition
Advertising has no impact on demand and competition
Advertising can increase or decrease demand and competition
Advertising can increase demand and competition
10
What is the impact of competition on profit and production?
Competition has no impact on profit and production
Competition can increase profit and production
Competition can increase or decrease profit and production
Competition can decrease profit and production
11
What is the impact of resource prices on profit?
Higher resource prices decrease profit
Resource prices have no impact on profit
Higher resource prices increase profit
Higher resource prices have no impact on profit

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