PACED Decision Making Review - 22 questions

The value of the next best alternative when a decision is made.

• opportunity cost

• value

• scarcity

• choices

Scarcity exists because

• China has the resources we need.

• there aren't enough resources to produce everyone's wants

• everything is too expensive

• the government has control over all our resources

You can earn a higher wage rate by

• building skills that are scarce in the labor market

• working more hours each week

• beginning a job immediately after high school

• working for your family

What are the steps in the PACED decision-making model?

• define the problem, act on the problem, choose possible, solutions, and execute the decision

• state the problem, list alternatives, list criteria, evaluate alternatives, and make a decision

• state the problem, think about solutions, decide what's important, figure out the choices, evaluate alternatives, and make a decision

You had two options for the evening: go bowling, or watch TV. You really wanted to get some exercise. You chose to go bowling. What was your opportunity cost?

• football

• bowling

• TV

• football and TV

Which of the following is likely to have the least influence on an individual's values?

• grade average

• family

• media

• religious affiliations

Fundamental beliefs that are worthwhile and important to you

• opportunity cost

• wants

• needs

• values

Which of the following factors is not influenced by values?

• individual's choice of friends

• individual's financial decisions

• individual's life cycle position

• individual's daily decisions

Scarcity is the fundamental problem that all people in all economic systems face.

• True

• False

Because of scarcity, we must all make choices.

• True

• False