Intro to Econ

What is economics?

• The study of money
• The study of how people choose to use limited resources
• The study of governments and citizens
• The study of the past

Economics is all about money.

• True

• False

Which of the following is a characteristic of a scarce resource?

• Scarce resources must be expensive
• Scarce resources must be unlimited in quantity
• Scarce resources must have only one use
• Scarce resources must be desireable

What is scarcity?

• The study of how people choose to use limited resources
• The problem of unlimited wants and limited resources
• The problem of limited wants and unlimited resources
• The problem of having too few options

"Gold" is an example of which factor of production?

• Land
• Labor
• Capital
• Entrepreneurship

A pickaxe is an example of which factor of production?

• Land
• Labor
• Capital
• Entrepreneurship

A mine worker is an example of which factor of production?

• Land
• Labor
• Capital
• Entrepreneurship

What is the value of the next-best alternative when you make a trade-off?

• Fruit snacks
• Opportunity Cost
• Scarcity
• Second-Best

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

The opportunity cost of increasing production from 7 to 9 trucks is

• Scarcity
• 2 boats
• 2 trucks
• 3 boats