Economics Module 1 Review

________is the study of how individuals and societies make choices under the condition of scarcity.

• Economics

• Scaricity

• Capital

• Business

Opportunity costs include _______________

• experiences

• time

• money

• all of these

_______________ is the value of the best alternative given up when a choice is made.

• trade-off

• scarce good

• opportunity cost

• resource

The knowledge, know-how, experience or education that an employee has is called:

• human resource

• human capital

• physical resource

• physical capital

The physical work effort by an employee at work is called a:

• physical resource

• natural selection

• labor union

• human resource

A decision that involves doing a little more or a little less of something is called a ________________.

• hunch

• natural selection

• marginal decision

• determination

Which of these is a negative unintended consequence from your decision to study for your math test last night?

• You did poorly on an English test that you forgot to study for.

• You scored an "A" on the math exam.

• You were able to teach your friends how to solve hard math problems.

• You were able to check your math homework before turning it in.

Having term limits on Boards of Directors for companies forces firms to rotate leadership to get new ideas. It also creates this unintended consequence:

• Less frequent board meetings

• Board members on multiple boards

• People with knowledge will be replaced by people who do not know a lot about the firm.

• Better decisions about the important issues.

T/F An unintended consequence occurs when an action results in an outcome that was not intended by the action.

• True

• False

The last step in the PACED decision making model is to __________________.

• list the alternatives

• make a decision

• define the problem

• evaluate the alternatives