Economics Basics Review

________ is the most basic economic problem.

• Scarcity
• Labor
• Greed
• Capital

Which of the following statements is true: 

• An economist would consider something scarce only if it is limited (not anything else) 
• A trade off occurs when you give up something you want in order to get something else you want 
• The economic social goal, economic equity, means everyone gets the same amount of money 
• In a traditional economy, the government gets to decide the answers to the 3 basic economic questions

Opportunity Cost is best defined as

• The best rejected alternative you give up when making a decision 
• 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 

What is the opportunity cost of increasing production of chicken nuggets from 17 to 41 orders? 

• 11 French Fries 
• 11 Chicken Nuggets 
• 14 French Fries 
• 14 Chicken Nuggets 

Only the government decides what goods and services will be produced in a market economy.

• True

• False

The four types of economic systems are: 

• Traditional, Command, Mixed, & Market
• Traditional, Command, Combined, & Market
• Communism, Capitalism, Free Market, and Macroeconomics
• Microeconomics, Macroeconomics, Individual, and Traditional.

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 type of economy is based on trading and bartering?

• Socialist

• Traditional

• Free Enterprise

• Command

Tony Romo, quarterback for the Dallas Cowboys NFL team, would be considered which one of the 4 economic resources?

• Land 
• Labor  
• Capital  
• Entrepreneurship

This is where buyers and sellers exchange goods and services.

• government

• economics

• market