Econ Unit 1 Review

The study of how society chooses to use its scarce resources for the production of goods and services to satisfy unlimited wants

• Consumer Sovereignty

• Economics

• Scarcity

• Capital

The freedom of the consumer to cast their dollar votes to buy, or not buy, at prices set in competitive markets, giving them the supreme authority to decide if businesses will stay open or will close.

• Consumer Sovereignty

• Economics

• Scarcity

• Capital

The condition in which human wants are forever greater than the available supply of times, goods, and services

• Consumer Sovereignty

• Economics

• Scarcity

• Capital

Which of the following is NOT one of the 3 fundamental economic questions?

• What is being produced?

• For whom is it being produced for?

• When is it being produced?

• How is it being produced?

An opportunity cost means giving up:

• All of the options you have not chosen

• The best option that was not chosen

• Profits in order to buy new merchandise

• Your fruit snacks at the lunch table

A command economy is best described as:

• An economy where a dictators or a central authority answer economic questions.

• An economy based in private ownership of resources and the market.

• An economy where people answer economic questions by doing what has been done for generations.

• An economy that is based in voluntary buying and selling in markets.

Which term best describes comparing the rewards and costs of an action to determine if the benefit outweighs the costs?

• Efficiency

• Normative Economics

• Nationalization

• Cost-Benefit Analysis

According to the graph, what points are considered efficient?

• Points A, B, C

• Points A and C

• Points U and X

• Point Z

When looking at the graph above, what is the relationship between the two variables (age of car & value of vehicle).

• Direct

• Inverse

What does it mean when a PPC (production possibility curve) shifts outward and expands to PPC2?

• The economy lost resources & technology

• The economy has the same amount of resources & technology

• The economy gained resources & technology