Economics BCTE

What is the fundamental problem of every society?

• labor costs

• scarcity

• economic interdependence

• market fluctuation

What is the definition of the economic term Opportunity Cost?

• 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 

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

What is the production possibilities curve?

• a graph that shows how efficient an economy can produce a combination of 2 goods

• a graph that shows how much money something is

• a graph that shows the opportunity a country has to give up in order to lose something else

• a visual representation of how land, labor, capital, entrepreneurs are distributed

True or False: Everything that is scarce requires a choice, and these choices always involve a tradeoff.

• True

• False

Land includes...

• The "gifts of nature" or natural resources not created by human effort.

• the tools, equipment, and factories used in production of goods and services

• people with all their efforts and abilities

• individuals who start a new business or bring a product to market.

Capital refers to...

• The "gifts of nature" or natural resources not created by human effort.

• people with all their efforts and abilities

• the tools, equipment, and factories used in production of goods and services

• individuals who start a new business or bring a product to market.

Labor refers to...

• people with all their efforts and abilities

• individuals who start a new business or bring a product to market.

• the tools, equipment, and factories used in production of goods and services.

• The "gifts of nature" or natural resources not created by human effort.

Entrepreneurs are...

• people with all their efforts and abilities

• individuals who start a new business or bring a product to market.

• The "gifts of nature" or natural resources not created by human effort.

• the tools, equipment, and factories used in production of goods and services

Tools we use to make products

• capital resources

• human resources

• natural resources

• entrepreneurs