Econ- Unit 1 & 2 Review Game

What is economics?

• The study of how individuals and societies satisfy their unlimited wants with limited resources

• The way in which a society uses its scarce resources to satisfy its people’s unlimited wants

• A situation that exists when there are not enough resources to meet human wants

• The economic resources needed to produce goods and services

Are modern day economic systems “pure” or “true” to the 3 (traditional, command, market) main economic systems? (Why or why not?)

• Yes, because they do not use a mixture or variety of characteristics set by each economic system.

• Yes, because they do use a mixture or variety of characteristics set by each economic system

• No, because they do not use a mixture or variety of characteristics set by each economic system.

• No, because they do use a mixture or variety of characteristics set by each economic system

What is scarcity?

• The study of how individuals and societies satisfy their unlimited wants with limited resources

• The way in which a society uses its scarce resources to satisfy its people’s unlimited wants

• A situation that exists when there are not enough resources to meet human wants

• The economic resources needed to produce goods and services

Scarcity can affect:

• Choices

• Wants

• Needs

• All of the above

Is scarcity and shortage the same thing?

• No, scarcity always exist and shortages may be temporary

• Yes, because shortages are scarcity of resources

• Yes, because scarcity drives economics.

• No, because businesses use to many resources

All economic systems answer 3 basic questions.

• What time?, Where?, At what rate?

• What to produce?, How to produce it?, Who is it for?

• When?, How?, What?

• Where is it being made?, Who is making it?, What is being produced?

The economic resources needed to produce goods and services.

• Goods

• Land

• Resources

• Factors of Production

What are the factors of production

• Land, labor, capital, entrepreneurship

• Traditional, command, market, mixed

• Physical capital, human capital, effort, skills

• Manufacturers, businesses, government, economic system

A _____________________ analysis is a tool an individual, business, or government can use to help evaluate the relative worth of economic choices.

• PPC

• PPF

• Cost-benefit

• Thinking at the margin

Is there such a thing as “Free Lunch”?

• Yes, because everything in life is free if its given to you

• Yes, because you shouldn’t have to pay for items

• No, because someone is always giving up something for you to gain something

• No, because everything is easy and free