POB Chapter 1.2 Review

The basic economic problem is that consumers do not have enough products or services to choose from.

• true

• false

____ means not having enough resources to satisfy every need.

• Opportunity cost

• Scarcity

• Trade-off

• Economic resources

Scarcity forces you to make ____

• choices

• resources

• money

• none of the above

_____ is the process of choosing which needs and wants will be satisfied.

• Opportunity cost

• Economic resource

• Production

• Economic decision making

When you give something up in order to have something else, you are making a(n) ____.

• economic resource

• opportunity cost

• trade-off

• want

You decide to buy a new video game instead of buying a new pair of pants. What is the trade-off in this example?

• the new pair of pants

• the new video game

• the money you're spending

• all of the above

The value of the next-best alternative that you were not able to choose is known as the ____.

• trade-off

• scarcity

• economic resource

• opportunity cost

The benefit you get from your choice should be _____ the benefit from the next-best choice that you did not choose.

• greater than

• less than

• equal to

• all of the above

Which of the following is the first step in the decision-making process?

• identify the choices

• act on your choice

• evaluate the advantages & disadvantages of each choice

• define the problem

For every decision, the problem must be clearly defined.

• false

• true