Unit 1 Review

The Science of Scarcity is known as...

• Choices

• Economics

• Pros v. Cons

• Government

What is Scarcity?

• Lack of Resources

• Lack of Options

• Lack of Choices

• Lack of Effort

Positive Statements are...

• Based on Facts

• Based on Opinions

• Based on History

• Based on Preference

Normative Statements are...

• Based on Value Judgements

• Based on Facts

• Based on Theories

• Based on Effort

Which of these is a Factor of Production?

• Land

• Labor

• Capital

• Entrepreneurship

Explicit Costs are...

• Out of Pocket

• Opportunities Given Up

• Out of Mind

• Out of Sight

Implicit Costs are...

• Out of Pocket

• Opportunities Given Up

• Out of Mind

• Out of Sight

What is Marginal Analysis?

• Decisions based statistics

• Decision based on preference

• Decisions based on emotion

• Decisions based on Increments

Which of these is NOT a Basic Economic Question?

• What should be produced?

• How should it be produced?

• Who consumes what we make?

• What should we charge?

A Traditional Economy is based on

• Traditions

• Beliefs

• the Barter System

• Entertainment