Economics Review (Found/PPC/CircFlow)

Scarcity is defined as a limited supply of resources and...

• limited wants for those resources

• unlimited resources

• limited resources

• unlimited wants for available resources

Who is affected by the condition of scarcity?

• The rich

• Large economies

• All societies

• Producers (ie: businesses)

Why do all societies have to make decisions about how resources will be used?

• People are greedy

• There are not enough resources for those who want them

• Resources are too expensive for most people

• Because there is a huge gap between the rich and poor

The opportunity cost of a good is

• its price in dollars and cents.

• the alternative goods forgone (given up).

• the price of alternative goods foregone (given up).

• none of the other options

What is the production possibilities curve?

• a graph that shows how much an economy can produce between 2 goods
• how much money something is
• the opportunity one has to give up in order to gain something else
• land, labor, capital, entrepreneurs

besides scarcity, economics is based on

• mathematical theories

• morals

• human behavior

• social structures

When you make a choice, you often have to give up other options...those things are called the...

• Opportunity Cost

• Missed Opportunities

• Misused Resources

• Scarce Options

Point B represents

• Product Market

• Factor Market

• Individuals

• Businesses

What are the four main parts of the circular flow diagram?

• Product Market, Stock Market, Factor Market, Fish Market

• Product Market, House Market, Factor Market, Good Market

• Factor Market, Product Market, Households, Firms

• Factor Market, households, Stock Market, super market

What does point A represent on the Circular flow diagram?

• Households

• Businesses

• Factor Market

• Product Market