Domain 1: Basic Economic Concepts

The definition of Scarcity is...

• An unlimited amount of resources to meet limited wants and needs
• A limited amount of resources to meet unlimited wants and needs.
• When people use time and energy to create events
• A city where individuals commit themselves to unlimited wants and needs

Sally decides to attend college after high school rather than getting a job. What is her opportunity cost?

• All the things she could have done in that time
• Her tuition and fees
• Wages she could have earned at a job
• The education she gains in college

Why are entrepreneurs important in a free enterprise economy?

• They hire their own employees
• They make safe investments
• They pay excellent salaries
• They start new businesses

What is foregone benefit of the next best alternative when resources are used for one purpose rather than another?

• Opportunity Cost
• Trade in
• Trade on
• Scarcity

What are these?
Land, labor, capital, and entrepreneurship

• Economy
• Infrastructure
• Factors of production
• Capital

If a country can produce a good at a lower opportunity cost then they have a(n)...

• Absolute Advantage
• Comparative Advantage
• Trade Surplus
• Trade Defecit

If a country produces more of a good than another country then they have a(n)...

• Absolute Advantage
• Comparative Advantage
• Trade Surplus
• Trade Defecit

Which of the following would be a clear indication of being an entrepreneur?

• Appearing on Shark Tank looking for investments
• The amount of revenue taken in during the company's first few years
• Ability to be a wealthy investor who provides capital to other business
• Ability to combine the factors of production and produce something innovative

Someone applies for a patent for their invention. The government grants these patents to:

• encourage free trade

• promote innovation

• regulate the business cycle

• strengthen American culture

According to this production possibilities curve, which point represents under-utilization?

• Point A
• Point B
• Point C
• Point D