Unit 1 Review

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

Tags

E.1A

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

• price floors/price ceilings

• Scarcity

• Shortage

• the study of microeconomics

Tags

E.1A

Because of scarcity, people are forced to make _________ about how to use resources.

• Choices

• Opportunities

• Houses

• Desires

Tags

E.1A

When you make a choice, you often have to give up other options. The value of what you gave up is called ________.

• Opportunity Cost

• Missed Opportunities

• Misused Resources

• Scarce Options

Tags

E.1A

Which one of the following is an opportunity cost?

• You stay out late and your parents ground you.

• You run a red light and you get a ticket.

• You choose to give up math to study for history.

• In a softball game, you miss the ball and strike out.

Tags

E.1A

Which of the following is not one of the three basic economic questions?

• What to produce?

• When do we produce?

• Whom do we produce for?

• How much to produce?

Tags

E.1B

What is the fundamental problem of economics? 

• How to keep consumers out of debt?
• How to fulfill our unlimited wants and needs with limited resources?
• How to figure out the way to make the most money?
• How do we ensure all people get a college education?

Tags

E.1B

Johnny has $50 and wants to buy a pair of Nike Shoes that cost $95.  He has to settle for a pair of Sketchers for $45.  In economic terms Johnny is facing the problem of: 

• Shortage
• Scarcity 
• Unemployment 
• Marginal costs

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E.1B

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

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E.1C

What could be an example of capital?

• Buildings

• Machines

• Money

• All of the above

Tags

E.1C