Understanding Personal Finance Concepts

Front

Scarcity in economics

Back

The limited nature of resources compared to unlimited wants

Front

Which of the following best describes opportunity cost?

Back

The next best alternative foregone when a choice is made

Front

What does a production possibilities curve (PPC) illustrate?

Back

The maximum possible output combinations of two goods or services an economy can achieve

Front

Which term refers to the value of the best alternative that is not chosen?

Back

Opportunity cost

Front

Scarcity forces individuals and societies to:

Back

Make choices about how to use resources

Front

Which of the following is NOT a fundamental concept of economics? Scarcity, Choice, Opportunity cost, Abundance

Back

Abundance

Front

What does it indicate if a country is operating inside its production possibilities curve?

Back

Some resources are underutilized

Front

What is the opportunity cost of choosing to study for a test instead of going to a movie?

Back

The enjoyment missed from not watching the movie

Front

How does scarcity relate to the need for making choices in economics?

Back

Scarcity requires individuals to make decisions about how to allocate limited resources.

Front

If a production possibilities curve shifts outward, what does this most likely indicate?

Back

An increase in available resources or technology