ECS1500: ECONOMICS Questions with Correct Answers (100% Tested and Verified)

UNLIMITED WANTS Correct Answer The insatiable desire of consumers for goods and services that will give them satisfaction or utility LIMITED MEANS Correct Answer Things that limit our ability to fulfil our wants and needs; time, skills, and money. OPPORTUNITY COSTS Correct Answer The loss of potential gain from other alternatives when one alternative is chosen. IMPORTANT DECISION MAKERS IN THE ECONOMY Correct Answer Households; Firms; Goverments THE PRODUCTION PROBLEM Correct Answer What goods should be produced? How scarce resources will be allocated? What quantities can be produced? How production will take place? THE DISTRIBUTION PROBLEM Correct Answer How the total of goods and services will distributed. THE COMMAND ECONOMY Correct Answer All economic decisions are made by the government. THE MARKET ECONOMY Correct Answer Economic decisions are made by individuals or the open market. MARKETS Correct Answer Meeting place where buyers and sellers come together to determine prices. PRICES Correct Answer The amount of money expected, required, or given in payment for something. MARKET EQUILIBRIUM Correct Answer A situation in which quantity demanded equals quantity supplied. A MODEL OF THE MARKET ECONOMY: DEVELOPING A MODEL Correct Answer Simplified representations of the real world. THE MARKET ECONOMY / THE ECONOMIC CIRCUIT / CIRCULAR FLOW MODEL Correct Answer