Economics Final

The fundamental problem of Economics: Unlimited wants, limited resources.

• Opportunity Cost

• Trade Offs

• Scarcity

• Marginal Benefit

ALL alternatives given up when making a decision.

• Scarcity

• Opportunity Cost

• Trade Offs

• Rational Decision Making

The SECOND best alternative given up when making a decision.

• Opportunity Cost

• Trade Offs

• Scarcity

• Rational Decision Making

The factors of production (land, labor, capital, and entrepreneurship) are also known as this:

• Trade Offs

• Environmental Resources

• Natural Resources

• Productive Resources

In order for a company to increase their efficiency, productivity, and overall profits, they should seek to:

• Never update their technology

• Let their employees train themselves

• Invest in new technology, but not train employees

• Invest in new technology and education for their workers

Looking at the PPC graph, which letter(s) are inefficient? Click ALL that apply.

• A

• B

• C

• E

• F

Which of the following is an economic system in which the government and people are used to decide how to use scarce resources?

• Market economy
• Command economy
• Traditional economy
• Mixed economy

The production possibility curve shows

• alternative combinations of two goods that an economy is capable of producing.

• the actual levels of production of two goods that the economy is achieving.

• alternative combinations of productive resources that can be used to produce two goods.

• the total value of two goods produced in one time period.

Which of these best explains when rational decisions occur in economics

• when marginal costs are small

• when marginal benefits decrease over time

• when marginal benefits are greater than or equal to marginal costs

• when marginal costs increase and marginal benefits remain constant

Which of the following is not a choice that Scarcity forces society to make 

• What to Produce
• How to Produce 
• For Whom to Produce 
• When to Produce