4th Intro to Econ-Review

What is the difference between a shortage and scarcity?

• shortages can be temporary or long term, but scarcity always exists
• a shortage results from rising prices; scarcity from falling prices
• there is no real difference 

forces people to decide what is most important

• shortage
• standard of living
• scarcity
• trade-off

What doctors and bankers provide

• goods
• services

The study of production, employment, prices, and policies on a nationwide scale is called?

• Macroeconomics
• Microeconomics

The study of how consumers, workers, and firms interact to generate outcomes in specific markets is called?

• Macroeconomics
• Microeconomics

A farmer milking their cows, a cheese factory using he milk to make cheese, and a restaurant using the cheese to make pizza are examples of what in action?

• Specialization
• Labor Roles
• Mass Production
• Assembly Lines

Which of the following is not a Factor of Production?

• Land
• Labor
• Capital
• Cash

Should the decision to buy something be made on cost alone?

• Yes
• No

Which do people compare in order to make choices?

• Costs & Benefits
• Supply & Demand
• Buying & Selling
• Apples & Oranges

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