Econ Final Review

The basic economic problem is

• too many resources

• resources are scarce

• government won't take action

• finding ways to make profit

What is the economic term for the things you sacrifice when you make a decision?

• trade-off

• scarcity

• decisions at the margin

• opportunities at the margin

Which is the next best alternative to the decision you make, the one you miss out on?

• scarcity

• opportunity at the margin

• decision at the margin

• opportunity cost

A resource provided by mother nature that is used by a business

• capital

• land

• production

• labor

Which of the following would be an example of labor?

• ideas for how to design a business

• time spent building the walls for a new store

• vegetables grown to be used in food at a restaurant

• hammers and nails used in building a new store

Which of the following would be an example of human capital?

• ideas for how to design a business

• time spent building the walls for a new store

• vegetables grown to be used in food at a restaurant

• hammers and nails used in building a new store

Which of the following would be an example of physical capital?

• ideas for how to design a business

• time spent building the walls for a new store

• vegetables grown to be used in food at a restaurant

• hammers and nails used in building a new store

Which of the following would be an example of land?

• ideas for how to design a business

• time spent building the walls for a new store

• vegetables grown to be used in food at a restaurant

• hammers and nails used in building a new store

What is meant by a point that is under the curve on a production possibilities curve

• efficiency

• not possible

• underutilization

What is meant when a point is outside the curve on a production possibilities curve?

• efficiency

• not possible

• underutilization