Economics 1.1.1

In economics, the value of the next best alternative is called _________.

• Scarcity

• Productivity

• Opportunity Cost

• Supply and Demand

The people who bring all the factors together to create something are practicing

• Land
• Labor 
• Capital
• Entrepreneurship

The opportunity cost of moving from A to B and C to D is

• 10 units of butter
• 10 units of guns
• 0 units of butter
• 25 units of guns

The opportunity cost of increasing production from 7 to 9 trucks is

• 1 boat
• 2 boats
• 2 trucks
• 3 boats

The study of economics is primarily concerned with:

• demonstrating that capitalistic economies are superior to socialistic economies. 
• determining the most equitable distribution of society's output.
• keeping private businesses from losing money.
• choices/decisions that are made due to lack of resources

Opportunity Cost is best defined as

• the value of the next best alternative that is given up due to the choice you made 
• 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 

What is the fundamental problem of every society?

• labor costs
• scarcity
• economic interdependence
• market fluctuation

How do you satisfy your unlimited wants in a world of limited resources?

• by making more money
• by making choices
• by stealing
• by setting a budget

This economic concept that nothing is truly free; everything has a cost. 

• scarcity
• opportunity cost
• TINSTAAFL - There is no such thing as a free lunch
• You break it, you buy it

If a point lies on the curve this means the company is being efficient. If a point lies inside the curve, this tells the company what?

• They are being over efficient
• They are not efficient
• It is impossible
• None of the above