Economics Recap

What is opportunity cost?

• the value of the next best option that is not selected when a choice is made.

• there is not enough of it.

• things people make to earn money.

• actions people do to earn money.

Andrea has planned a trip to the beach for her family on Labor Day. Her daughter has been invited to the mountains by a friend. Her daughter decides to go to the beach. What is her opportunity cost?

• a trip to the beach

• a trip to the mountains

Economic resources can be categorised into 4 groups

• land, labour, capital, enterprise

• money, gold, stock, natural resources

• machinery, water, human effort, human creativity

• environment, human, capital and money

Inflation is

• an average decrease in the general prices of goods and services

• an increase in the purchasing power

• an average rise in the general level of prices of goods and services

• None of the above

Globalisation is

• the expansion of the globe

• the expansion of the scale of a national economy

• caused by economic growth

• the expansion of business operations into other countries

In general, if the price of a good or service goes down, what happens to the demand for that good or service?

• demand goes up
• demand stays the same
• demand goes down
• none of the above

The law of supply states:

• As price increases, quantity supplied increases

  As price decreases, quantity supplied decreases

• As price decreases, quantity supplied increases

  As price increases, quantity supplied decreases

• As price increases, quantity supplied increases

  As price increases, quantity supplied decreases

• As price increases, quantity supplied increases

  As price decreases, quantity supplied increases

The supply curve shows

• changes in price relating to demand only

• a relationship between demands and wants

• a relationship between price and quantity supplied

• changes in price relating to supply purchased

Tick the following factors that affect supply:

• Cost of Production

• Technological Change

• Productivity Growth

• Climate Conditions

• Government Intervention

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

• limited wants for those resources

• unlimited resources

• limited resources

• unlimited wants for available resources