Basic Economic Concepts

What is the basic problem of economics?

• More money more problems

• Opportunity Cost

• Scarcity of resources

• Factors of Production

What does utility mean?

• The usefulness of an item

• there is no opportunity cost

• Unlimited wants limited resources

• A type of belt

Define Specialization

• Every decision has a trade-off

• Workers gain expertise in their assigned task

• Leads to decreased efficiency

• No such thing as a free lunch

When a car is being used to deliver pizzas it is a

• consumer good

• human resource

• really inefficient method of delivery

• capital good

When a company will pay for their employees to get a college education, they are investing in their skills, abilities and knowledge to boost productivity. This is an example of investing in

• human capital

• capital goods

• efficiency

• reaganomics

Which is NOT a factor of production?

• Natural Resources

• Human Resources

• Technology

• Capital Resources

Which is an example of a good?

• iPhone

• Volunteer worker

• Custodian

• Plumber

What does efficiency mean?

• Using more resources to increase productivity

• Use the least amount of resources to increase productivity

• A large apartment

• The spurs starting 5 centers in their lineup.

What is productivity?

• the education level of your workers

• Playing on your phone instead of doing work

• How much a company is producing of a good or service

• Something that should be inefficient

What illustrates trade offs, scarcity and opportunity cost?

• The Production Possibilities Curve

• The Laffer Curve

• A supply curve

• A bell curve