Week 5 - Grade 12 - Economic Choices and Making Decisions

George earns a $250 bonus at his job for increasing his output by an additional 50% two weeks in a row. He makes a list of what he wants to buy with his bonus: 1: the latest model of Adidas athletic shoes, 2: Air Pods. He buys Adidas. What is his opportunity cost in this case ?

• the Air Pods

• the shoes

• the coat

• the cash

 

Mike has $10. He can buy a new video game or buy a shirt. He decides to buy the game and not the shirt. Not buying the shirt is his

• incentive

• opportunity cost

• supply

• demand

 

Scarcity refers to

• what is given up when a choice is made

• the factors of production

• not being able to satisfy all your wants at the same time

• things used to change economic behavior

Economics can be described as the study of

• Money

• Choices

• graphing

• price ceilings and price floors

What is the definition of economics?

• The study of human behavior and attitudes

• The study of past events and the impact they have had on people

• The study of political and social interactions

• The study of the production and distribution of goods and services

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 resource

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

• only applies to luxury items

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

• price floors/price ceilings

• Shortage

• the study of microeconomics

• Scarcity

Economics is

• Land, labour, capital, entrepreneurs

• The study of how people choose to use their scarce resources to satisfy their unlimited wants

• When there is not enough of something (good, service, resource) to satisfy everyone's wants, at a zero pric

• The cost of the next best alternative forgone

Scarcity is

• The cost of the next best alternative forgone

• When there is not enough of something (good, service, resource) to satisfy everyone's wants, at a zero price

• Goods/services that you would like to have but are not necessary for survival e.g. Netflix

• Limited time, skills, and money to satisfy wants

Why do we study economics?

• to become independently wealthy

• because the state requires that we do so and we just love learning about the economy

• because we want to graduate

• although all these answers are technically correct, the most correct answer is:to learn how to make wise decisions to satisfy unlimited wants using limited resources