Unit 1 Economics Fall 2023

What is the fundamental Economic problem?

• profit motives

• government control

• scarcity

• resources

Why do all societies have to make decisions about how resources will be used?

• People are greedy

• There are not enough resources for those who want them

• Resources are too expensive for most people

• Because there is a huge gap between the rich and poor

All of the following are considered goods EXCEPT

• Nike cleats purchased for the BHS football team

• Brand new Adidas jerseys purchased for the BHS soccer team

• New equipment for the BHS weight room

• A "Safety in the Sun" course required for all BHS athletes.

A person is considered an entrepreneur because she

• has earned millions of dollars.

• has many employees who work for her.

• combined resources to create new products.

• was a woman who succeeded in a male-dominated industry.

Which of the following is an example of a land resource that a person who owns a restaurant would need?

• the servers who wait on customers.

• the farmer who grows the vegetables served at the restaurant.

• the water used for drinking and cleaning.

• the building where the restaurant is located.

A rational decisionmaker takes an action if and only if

• the marginal benefit of the action exceeds the marginal cost of the action.

• the marginal cost of the action exceeds the marginal benefit of the action.

• the marginal cost of the action is zero.

• the opportunity cost of the action is zero.

Which of the following is true about the photo shown here?

• This man is improving his human capital by learning a skill.

• This man is using up his physical capital by working hard.

• This man is improving the physical capital at the hospital.

• This man is gaining financial capital by working.

What is the opportunity cost of going to college?

• no student loan debt

• high unemployment

• low unemployment

• significant student loan debt

Tradeoffs are best defined as

• alternative choices made by consumers, when they essentially give up one thing in order to obtain another

• the cost of the next best alternative use of time, money or resources

• intrinsic value that people receive when they choose one option over another

• the value of the next best alternative use of time money or resources

After school today, your friend invites you to lunch at Taco Bell, which they say that they will pay for 100%. According to economics there is no such thing as a free lunch. Which of the following might you have given up?

• time

• leisure

• recreation

• all of the above