Introduction to Economics

Economics is?

• the study of how people in societies use scarce resources.
• the study of money.
• the study of profits and losses.
• the study of needs and wants.

The three basic economic questions are?

• what do people want, what can they afford, and what is the price?
• what to produce, how to produce it, and for whom to produce?
• what to make, how to advertise, and what is the price?
• what to make, how many to make, and who is the market?

What are the four factors of production?

• land, water, oil and coal.
• air, wind, sun, and water.
• land, labor, capital, and entrepreneurship.
• money, people, factories, and trucks.

Scarcity is defined as? 

• unlimited want and needs and limited resources.
• unlimited resources and limited wants and needs.
• limited wants, unlimited needs, and unlimited resources.
• limited needs, unlimited wants, and unlimited resources.

A need is a?

• luxury.
• an accessory.
• purchase that sustains life.
• purchase we can do without.

A want is a?

• necessity.
• luxury.
• accessory.
• fantasy purchase.

A trade-off is?

• oppotunity cost.
• a decision.
• the value of a second choice purchase.
• everything given up to make a single purchase / choice.

Opportunity cost is the 

• value of a second choice lost.
• purchase price.
• choice of making a decision.
• value of the trade-offs.

The production possibilities curve shows at all points on the frontier 

• maximum productivity, maximum efficiency, full employment
• underutilization
• unemployment
• desirable, but unattainable

A point under the production possibilities curve represents 

• unemployment, inefficiency, unproductivity
• unattaiable, but not desirable
• maximum efficeiency
• full employment