AP Economics Vocabulary

Opportunity Cost is 

• The alternatives you didn't choose
• The second best alternative 
• The negative aspects of an action
• The choice you made

What is the best example of scarcity

• The restuarant is not crowded tonight 
• The school parking lot only has 150 spaces but 200 students want to park there
• There are 500 houses in the subdivision and 250 of them are occupied
• A person decided to dye her hair blonde instead of red

If you decide to relax (leisure) for 7 hours instead of 5, what is your opportunity cost?

• 2 hours of study
• 2 hours of leisure
• 5 hours of leisure
• 5 hours of study

You buy a chair on craigslist for $10. You then discover that this is a special chair you could sell for $100, you decide to keep the chair anyway. What is the opportunity cost?

• $10
• $90
• $100
• $110

A mixed economy is

• a combination of capitalist and command elements in approximately equal amounts

• somewhere on the spectrum between entirely capitalist and entirely command

• meeting some of its needs through domestic production and some through trade

• production including both goods and services

• a combination of both private activity and government activity

Unlike a market economy, a command economy uses

• More centralized planning in economic decision making

• Consumer sovereignty to make production decisions

• Its resources more efficiently

• Price signals in economic decision making

• The popular vote in making resource allocation decisions