Chapter 18 What is Economics

1. What are things like food, clothing, and shelter called?

• economics

• needs

• scarcity

2. What are things like entertainment, vacations, and other items that make life more comfortable and enjoyable called?

• Economics

• Scarcity

• Wants

3. What occurs when we do not have enough resources to produce all of the things we would like to have?

• Needs

• Scarcity

• Wants

4. What question in regarding using our resources asks us to choose between improving our roads or more money for schools?

• For Whom to Produce

• What to Produce

• How to Produce

5. What question regarding using our resources asks if we should allow businesses to pollute?

• For Whom to Produce

• How to Produce

• What to Produce

6. What question regarding using our resources asks how the goods and services will be distributed, who will be able to afford the new car?

• For Whom to Produce

• How to Produce

• What to Produce

7. What do economists use to predict what will happen if something in the economy should change?

• Economic freedom

• Economic inequality

• Economic models

8. What is the alternative you face when you decide to do one thing rather than another, like driving less so we have less pollution?

• fixed costs

• Measures of cost

• Trade-off

9. What is the cost of the next best use of your time or money when you choose to do one thing rather than another?

• Fixed cost

• Opportunity cost

• Total cost

10. What type of costs for a business stay the same no matter how many units of a good are produced?

• Fixed costs

• Marginal costs

• Total costs