1) What is a "good"? a) A person performing an action for another person. b) An item, such as a bed, book etc. c) A doctor 2) What is a "service"? a) A person performing an action for another person. b) An item, such as a bed, book etc. c) A doctor 3) What does "scarcity" mean? a) There is a limited number of goods, so some can be hard to find. b) There are enough goods to fill every need. c) Scarcity means going to the doctor. 4) Clothing, shoes and cars are all _____________ a) services b) goods 5) There is a limited amount of goods available. a) True b) False 6) What problem did Miss Miller have? a) People did not want to buy her bracelets. b) There were not enough green bracelets. c) The pink beads were sold out. 7) Why could Miss Miller not buy more pink beads? a) The beads were all sold out. b) The beads were too expensive 8) Tomatoes are more scarce, or limited, during the winter. Do you think that tomatoes will cost more or less when they are scarce? a) Tomatoes will cost more. b) Tomatoes will cost less. 9) Why do products cost more when they are scarce? a) People do not mind to pay a lot of money. b) More people want them and there are not a lot.

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