Grade 7 Needs vs. Wants quiz with answers

📚 Quick Study Guide

• 🏠 Needs: Things essential for survival, like food, water, shelter, and basic clothing. Think of them as the things you *have* to have.
• 👕 Wants: Things that you desire but aren't essential for survival. They improve the quality of life but are not necessary.
• ⚖️ Scarcity: The fundamental economic problem that our wants are unlimited, but resources are limited. This forces us to make choices.
• 💸 Opportunity Cost: The value of the next best alternative when making a decision. When you choose to buy a new video game, the opportunity cost might be a pair of shoes you needed.
• 🎯 Decision Making: Balancing needs and wants requires careful decision-making, considering factors like cost, benefits, and opportunity cost.
• 🌱 Impact on Society: Understanding needs and wants is crucial for understanding economic systems and consumer behavior in society.

📝 Practice Quiz

1. Which of the following is the BEST example of a NEED?
   1. A brand new smartphone
   2. Designer shoes
   3. Nutritious food
   4. A fancy car
2. Which of the following is the BEST example of a WANT?
   1. Clean drinking water
   2. A warm coat in winter
   3. A gaming console
   4. Basic medical care
3. Scarcity refers to:
   1. Having unlimited resources
   2. Having limited wants
   3. Having unlimited wants and limited resources
   4. Having more needs than wants
4. Opportunity cost is:
   1. The cost of all your needs
   2. The cost of all your wants
   3. The value of the next best alternative when making a decision
   4. The total cost of all your choices
5. Which of the following is NOT a basic NEED?
   1. Shelter
   2. Clothing
   3. Entertainment
   4. Food
6. Understanding the difference between needs and wants helps us:
   1. Make better financial decisions
   2. Ignore our desires
   3. Spend all our money
   4. Avoid making choices
7. If you choose to buy a movie ticket instead of a book, the book represents your:
   1. Need
   2. Want
   3. Opportunity Cost
   4. Investment