Thinking Like an Economist

________ is the most basic economic problem.

• Scarcity
• Labor
• Greed
• Capital

Benefits offered to encourage people to act in certain ways.

• Incentive 
• Utility 
• economize
• Trade-off

Any alternative you give up when you make an economic choice is called a ___.

• Trade-off

• Opportunity cost

• Cost-benefit analysis

• marginal cost

Is this shelter a want or a need?

• Want
• Need

The value of the next best alternative, or what you give up by choosing one alternative over another.

• Scarcity

• Opportunity Cost

• Cost-benefit analysis

• Marginal Cost

Labor refers to...

• people with all their efforts and abilities

• individuals who start a new business or bring a product to market.

• the tools, equipment, and factories used in production of goods and services.

• The "gifts of nature" or natural resources not created by human effort.

Examining the cost and the expected benefits of a choice is an aid to decision making

• Trade-off
• Cost-benefit analysis 
• Marginal Cost 
• Marginal Benefit

Opportunity Cost is best defined as

• The best rejected alternative you give up when making a decision 
• The price you pay to purchase something 
• The benefit you gain by making a decision 
• The amount of debt you take on by making a decision 

You visit the doctor for a checkup.

• Good

• Service

Define needs.

• system of selling and buying goods and services

• things we need to survive

• things we would like to have, but do not need to survive

• The thing that you lose when you choose to buy something else