Economics Fundamentals 1 Review

The fundamental problem of Economics: Unlimited wants, limited resources.

• Opportunity Cost

• Trade Offs

• Scarcity

• Marginal Benefit

ALL alternatives given up when making a decision.

• Scarcity

• Opportunity Cost

• Trade Offs

• Rational Decision Making

The SECOND best alternative given up when making a decision.

• Opportunity Cost

• Trade Offs

• Scarcity

• Rational Decision Making

Marco must choose between buying a Play Station 4 and the Xbox X. He chose the Place Station 4. What is his opportunity cost?

• Play Station 4

• Xbox X

• The Play Station 4 and the Xbox X

• There is no opportunity cost

The factors of production (land, labor, capital, and entrepreneurship) are also known as this:

• Trade Offs

• Environmental Resources

• Natural Resources

• Productive Resources

What is an example of a NATURAL resource?

• Cows, Iron, trees

• Hammer, saw, a factory

• A business owner

• A construction worker

What would be THREE reasons for an entrepreneur to start their business?

• Profit

• Paying taxes to the government

• To work for others

• Creating/innovating new products

• To create jobs

Receiving the training necessary to perform a job is building what?

• Entrepreneurship

• Physical Capital

• Human Capital

• Labor

Students study for their unit one exam because they wish to pass the exam. Getting a good grade is a(n) _______. Where people respond to rewards and punishments in predictable ways.

• Incentive

• Rational Decision Making

• Scarcity

• Opportunity Cost

Papa John's hired a new worker. They noticed this worker can make ten extra pizzas for them per hour. The ten extra pizzas is known as:

• Specialization

• Marginal Cost

• Marginal Benefit

• Opportunity Cost