Econ Unit 1

In economics, the concept that represents the cost of forgoing the next best alternative when making a decision is known as ____________.

• exchange cost

• opportunity cost

• trade-off

• decision cost

Austrian economist who believed very strongly in free markets. In his book The

Road to Serfdom, he defended free-market capitalism, and argued against socialist and collectivist thought.

• Friedrich Hayek

• John Maynard Keynes

• Adam Smith

• Milton Friedman

What do economic decisions produce?

• Wealth
• costs

• Investments
• Profits

What is this graph called?

• Production Possibilities Curve
• Demand Curve

• Supply Curve

• Demand Schedule

Points B, C, and D represent

• Inefficient

• Productive

• Efficient

• Unattainable

Point X represents

• Efficient

• Inefficient

• Opportunity Cost

• Unattainable

Point A represents

• Inefficient
• Efficient

• Unattainable

• Supply

What is the impact of competition on prices?

• Competition drives up market prices

• Competition does not influence market prices

• Competition keeps prices lower

• Competition maintains market prices

Our resources are _______

• limited / scarce

• unlimited

• controlled by the Government

• sufficient

Our needs and wants are _____________

• limited

• obtainable

• equilibrium

• Unlimited