Unit 1 Introduction of Economics

Unit 1 Introduction of Economics

​WHAT IS ECONOMICS???

Multiple Choice

The level of government spending.

• Microeconomics

• Macroeconomics

Multiple Choice

Production of sugar mill

• Microeconomics

• Macroeconomics

Multiple Choice

Foreign exchange rate

• Microeconomics

• Macroeconomics

Multiple Choice

The unemployment rate in Jamaica

• Microeconomics

• Macroeconomics

Multiple Choice

Consumers own all the factors of production.

• TRUE

• FALSE

Multiple Choice

Firms provide households with the factors of production.

• TRUE

• FALSE

Multiple Choice

The government oversees firms and consumers.

• TRUE

• FALSE

​WHAT IS THE DIFFERENCE BETWEEN NEEDS AND WANTS???

For each of the following scenarios state the opportunity cost.

Multiple Choice

1. Jayelle has money to buy a pair of sneakers or an economics textbook. She chooses the pair of sneakers.

• A pair of sneakers

• Economics textbook.

Multiple Choice

2. Amartya chooses to do her homework instead of going to the party.

• Party

• Homework

Multiple Choice

3. Daniel gives a donation to the church. He could have used the money to visit New York.

• Visit New York

• A donation to the church.

Multiple Choice

4. Stephen pays for guitar lessons. He could have taken his girlfriend on a date.

• Guitar

• Girlfriend on a date

​Free Goods and Economic Goods

• A free good is a good that is not scarce, and therefore is available without limit. A free good is a good with zero opportunity cost. This means it can be consumed in as much quantity as needed without reducing its availability to others. Free goods cannot command a price. For instance, air and sea water.

• ​Economic goods are products or services that can be sold at a price. This may be to a business, individual, government, or other organization. It is important to note that an economic good is also scarce. E.g. cars, food items

Multiple Choice

Economic goods have zero opportunity cost.

• TRUE

• FALSE

Multiple Choice

An example of economic goods is a textbook for school.

• TRUE

• FALSE