Start of Econ

What is opportunity cost?

• your choice
• what you give up to make a choice

What is scarcity? 

• Having too many resources 
• Not  having enough resources 

A popular bakery has only a few ingredients left to make their products.  They could bake muffins or cookies, but they can’t make both.  The bakers decide to make cookies for their customers.  What is the opportunity cost of their decision?

• muffins 
• cookies 

The Welch family has saved some money.  They can spend it on a vacation to the Grand Canyon or build a swimming pool in their back yard.  They decide to spend the money on a swimming pool.  What is the opportunity cost of their decision?

• vacation 
• swimming pool 

The economic problem is that

• resources are limited and wants are limited.

• resources are unlimited and wants are limited.

• resources are limited and wants are unlimited.

• resources are unlimited and wants are unlimited.

Which sentence is a example of a benefit?

• I did not have a toy because I saved up for college

• I got a fun toy to play with that I bought from the store

• I like apples

• Doing your chores

Scarcity is a basic economic problem because -

• resources are limited

• government limits production

• opportunity cost limit demand

• people have trouble making choices

An example of how a Business Incentive MOTIVATE Workers to do their best is

• offer "employee of the month" reward

• threatening them with getting fired

• reduce a workers pay

• None of these

What is an incentive?

• encourages specific behavior and helps to motivate an individual to take specific action

• a bribe to make you afraid

• an offer to make a deal that causes worry if you do not act a specific way

• none of these

An example of how a Business Incentive MOTIVATE Consumers to buy their product is

• offer "children eat free" with paid adult at a restaurant

• threatening a customer with no more merchandise

• place fear into customer to buy or get a price increase

• None of these