Economics - Unit 1

__________ is the study of how people (including companies/countries) make CHOICES on buying, selling, using, and distributing goods/services.

• Economics
• Consumer Science
• Opportunity Costs
• Laissez Faire

______________ not having enough resources to satisfy all of the needs/wants

• Scarcity

• Opportunity Cost

• Tradeoff

• Capital

Scarcity forces people to_____________________

• Make Choices

• satisfy all their wants and needs

• Give up opportunity cost

• Pay higher prices

What are the 3 economic questions?

• What to produce? How To Produce? For whom to produce?

• Who to produce? Why you produce? Like to produce?

• Why to produce? Tell who to produce? Things to produce?

• What to produce? How to produce? When to produce?

An economics textbook is an example of:

• capital.

• labor.

• a natural resource.

• entrepreneurship.

The highest valued alternative that must be given up in order to choose an option is called the:

• opportunity cost.

• utility cost.

• scarcity expense.

• disutility option.

Which of the following is true of the production possibilities curve?

• Any point inside the curve is inefficient, and any point outside the curve is unattainable.

• Any point inside the curve is unattainable, and any point outside the curve is inefficient.

• Any point inside the curve is unattainable, and any point outside the curve is unattainable.

• Any point inside the curve is inefficient, and any point outside the curve is inefficient.

Identify the potential Factor of Production shown in this photo.

• physical capital

• land

• labor

• risk-taking entrepreneur

Which of the following is true about scarcity?

• Scarcity affects all societies.

• Scarcity exists only in poor countries.

• Scarce goods lead to lower prices.

• Scarcity of resources can be eliminated using sound economic policies.

Which of the following is an example of scarcity rather than shortage?

• Extremely hot temperatures lead to increased air-conditioner use and power outages.

• There aren't enough software engineers to fill all the job openings in Silicon Valley.

• Newly discovered Van Gogh paintings are put up for auction and sell for millions.

• During the holiday season, an outfitter runs out of skis.