Econ 1

You bought two CDs with your last $30. What is the opportunity cost?

• the difference between the cost to make

  the CDs and the price you paid

• the $30 that you gave the clerk for the

  CDs

• the movie with your friends that you now

  cannot afford

• the joy of knowing you are the first to

  have these CDs

To improve its standard of living, a nation’s economy must

• remain stable.

• grow through innovation.

• reach economic equity.

• allow the central government to make

  economic decisions.

Something we desire but that is not necessary for survival

• Want

• Need

• Good

• Service

Something essential for survival

• Want

• Need

• Good

• Service

Physical objects that someone produces

• Want

• Need

• Good

• Service

An action or activity that one person performs for another

• Want

• Need

• Good

• Service

SELECT ALL THAT APPLY: Which one of these is an example of a scarce resource?

• Time

• Money

• Food

• Oil

The fact that there are limited amounts of goods and services to meet unlimited wants is called:

• Scarcity

• Shortage

• Surplus

• Economics

Economics is the study of how people seek to satisfy their needs and wants by making choices

• True

• False

What to produce?
How to produce it?
For whom to produce? 
These are:

• opportunity cost
• basic economic questions
• types of economies