Economics: Choices & Scarcity

Economics can be described as the study of

• Money

• Choices

• graphing

• price ceilings and price floors

The condition of scarcity can be described as one that

• afflicts only poor people and nations

• exists when our unlimited needs/wants exceed our limited resources

• exists when our limited resources exceed our unlimited needs/wants

• only applies to luxury items

FOP refers to

• Final Production of a G/S

• Factors and Production

• Facts of Possibilities

• Factors of Production

The 4 Factors of Production (FOP) are

• rent for land, wages for labor, profit for capital, interest for entrepreneurship

• land, labor, capital, entrepreneurship

• land, labor, physical capital, financial capital

• land, labor, resources, profits

Why do entrepreneurs take risks?

• to set their own work hours

• to earn a profit for themselves

• to provide G/S to their customers

• to provide salaries and benefits to their employees

The crops and animals on a farm are examples of which factor of production?

• Land

• Labor

• Capital

• Entrepreneurship

Opportunity cost (OC) can be described as

• the number 2 alternative in your list of choices

• the next best choice and one you didn't choose

• your number 1 tradeoff when making a choice

• your most desirable tradeoff

• all of these answers are examples of opportunity cost (OC)

Which description is most correct about opportunity cost (OC)

• impacts small businesses more often than large businesses

• can be avoided if you have enough money

• is inherent in all decisions/choices

• can only be expressed in monetary terms

__________ is the fundamental, universal, and perpetual economic problem that no one is immune to.

• price floors/price ceilings

• Scarcity

• Shortage

• the study of microeconomics

3 types of capital

• human capital, financial capital, entrepreneurial capital

• capital city, capital state, capital letters

• physical capital, financial capital, human capital

• physical capital, working capital, entrepreneurial capital