Economics Unit 1

Front

What is Economics?

Back

The study of the choices people make to satisfy their unlimited wants and needs.

Front

A limited amount of resources to meet unlimited wants and needs.

Back

Scarcity

Front

What are the 3 basic Economic questions?

Back

What, how, and for whom to produce?

Front

Which of the following is an example of a trade off?

• Buying popcorn or ice cream
• Going to class and having fun
• Wearing a sweater during the winter
• None of the above

Back

Buying popcorn or ice cream

Front

The value of the next best alternative that is given up

Back

Opportunity Cost

Front

What is the opportunity cost of spending all night playing video games instead of studying for a quiz?

Back

More time spent studying

Front

What is trade?

Back

When producers and consumers voluntarily agree to provide one good or service in return for another.

Front

Focusing in on one or a few aspects of production

Back

Specialization

Front

Exchanging chips for hats is an economic example of

Back

Barter

Front

What is a problem with the barter system?

Back

Consumers do not know the real value of a good