Economics Final Exam Review

Front

Economics is the study of _____

Back

Scarcity

Front

Scarcity forces us to make a choice. What do we call any decision to swap one resource for another?

Back

Trade-off

Front

What do we call the cost of our choices?

Back

Opportunity Cost

Front

What do we call the economic model that allows us to clearly define our costs by putting quantitative values on our choices?

Back

Production Possibilities

Front

Is the opportunity cost of producing Skis or Snowboards constant?

Back

Yes

Front

What would be the opportunity cost of moving from Point A to Point B on this Production Possibilities Curve? Options: 200 pairs of skis, 50 snowboards, 100 pairs of skis, 100 snowboards

Back

100 pairs of skis

Front

Study the Production Possibilities Curve. Assuming we are operating at maximum efficiency, what would be the Opportunity Cost to produce 2 units of Robots if we are currently producing zero units of robots?

Back

3

Front

Which of these points represents a production combination that is possible, but is inefficient? Options: A, C, X, B

Back

A

Front

Which point represents a production combination that is not possible? Options: A, C, D, X

Back

X

Front

Which point represents a production combination that is possible and efficient? Options: A, X, D

Back

D