Unit 1 Test Review Fall 2023

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 

Define the term "opportunity cost."

• The cost of pursuing an opportunity.

• A fee you pay to submit a college application.

• Everything you give up when you make an economic choice.

• The next-best thing you give up when you make an economic choice.

Mr. Umstot goes to the movies and sees two movies playing that he really wants to see. He decides to see Black Widow instead of Avatar 2. What is his opportunity cost for seeing Black Widow?

• Black Widow

• Avatar 2

• The cost of the ticket and popcorn

• Going to sleep early

What is the most basic problem of economics?

• Scarcity
• Allocation
• Productivity
• Specialization

What is it called when you choose between two possible uses for a resource, giving up one alternative for another?

• Trade Offs
• Real Costs
• Building materials
• Trading spaces

What is the production possibilities curve?

• a graph that shows how much an economy can produce between 2 goods
• how much money something is
• the opportunity one has to give up in order to gain something else
• land, labor, capital, entrepreneurs

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

In making a rational decision, which should be greater?

• Marginal benefit
• Marginal cost