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Economics Ch.
1 - Lesson 1 Review page 12
1. What is the difference between a good that is a need and a good that is a want? Provide one example of each.
Ans. A good that is a need is something necessary for survival, while a good that is a want is something desired but not essential for survival. Example of a need: Food - we need to eat to fulfill our basic nutritional requirements. Example of a want: Luxury car - owning a luxury car is not essential for survival but is desired for comfort or status. 2. Why do all societies face the problem of scarcity? Ans. All societies face the problem of scarcity because resources are limited but human wants and needs are unlimited. 3. What basic choices are faced by all societies? Ans. All societies must make choices regarding what to produce, how to produce it, and for whom to produce. 4. Why do we study Economics? Ans. We study economics to understand how individuals, businesses, and governments make choices about allocating resources and to analyze the impact of those choices on society.
