Intro to Economics

What is scarcity? 

• Giving something up to have something else
• Extra cost of production
• The condition that results form having unlimited wants with limited resources
• Rise in general level of prices and workers need more money

What is choice?

• The act of picking or deciding 
• The best option possible
• When something is very good
• When someone has no say in a matter

What is Marginal Advantage (Analysis)?

• Making a decision by comparing costs and benefits

• Making a decision by comparing scarcity and choice

• Living on the edge because you have an advantage

• The advantage of using margarine

Which of the following is NOT a natural resource?

• Oil
• Water
• Car
• Air

Which of the following IS a capital resource?

• Wood
• Computer
• Labor
• Knowledge

My business makes tacos and maps. If I spend all my time making tacos, what is my opportunity cost? 

• Tacos
• Maps

On this PPC, which point is efficient? 

• A
• C
• D
• None

On the PPC, which point is inefficient?

• A
• B
• C
• D

On the PPC, which point is unobtainable?

• A
• B
• C
• D

You make a decision without looking at the costs and benefits. Have you used marginal analysis? 

• Yes
• No