Civics Unit 7 Econ Review

Economics is the study of how we make decisions in a world of limited _________

• needs

• wants

• choices

• resources

Capitalism is an example of a(n)

• economic model

• economic decision

• economic system

• branch of economics

The income from a full time job that you give up when you go to college is called a(n)

• trade-off

• opportunity cost

• marginal cost

• marginal benefit

The additional profit obtained from producing one more unit in a factory is called a(n)

• trade-off

• opportunity cost

• marginal cost

• marginal benefit

What does microeconomics deal with?

• the production of whole industries

• the distribution of goods worldwide

• the economic decisions of individuals

• the allocation of resources by governments

Which of the following items is a want?

• food

• video games

• shelter

• clothing

Which of the following is a natural resource?

• water

• skills

• machinery

• knowledge

What is an example of a fixed cost of doing business?

• wages

• cost of fuel

• price of materials

• mortgage payment

What is the formula for total costs?

• fixed costs + variable costs

• fixed costs + marginal costs

• variable costs + marginal costs

• fixed costs + variable costs + marginal costs

Why do businesses use cost-benefit analysis?

• to compute total costs

• to measure total revenues

• to decide how much to produce

• to compare marginal cost and marginal revenue