Unit 1 Macro Test Review

Front

Fundamental problem of economics

Back

Unlimited wants vs limited resources

Front

Opportunity Cost

Back

Value of next best alternative given up

Front

Point B represents:

Back

Production at the country's maximum potential

Front

Point Y on the PPC

Back

Unattainable / impossible

Front

Opportunity cost of moving from W to X

Back

6 units of honey

Front

Production possibility: 2 pairs of shoes and 20 pizzas

Back

Correct answer

Front

Products used instead of each other

Back

Substitutes

Front

Graph showing increase in demand

Back

Graph 2

Front

Graph showing increase in quantity demanded

Back

Graph 1

Front

Demand decreases as income increases

Back

Inferior good