Unit 1: Intro to Economics

What is scarcity? 

• Giving something up to have something else
• Extra cost of production
• The condition that results form having unlimited wants with limited resources
• Rise in general level of prices and workers need more money

What is choice?

• The act of picking or deciding 
• The best option possible
• When something is very good
• When someone has no say in a matter

Economics is

• the study of how people produce distribute and use goods and services.
• the study of producers and consumers.
• the study of the United States.
• the study of how economists do their jobs.

The place where goods and services are exchanged

• barter
• currency
• market
• resource

Something you can't live without

• Want

• Need

• Desire

• Value of Work

What is one of the functions of money?

• To look good

• Units of discounting

• Medium of exchange

• It holds no value

Which is an example of rational self-interest (there are two correct answers)?

• Choosing a TV when budgeting because you enjoy watching TV.

• Getting coffee once a week because you want a treat.

• Needing air to breath.

• Having to wear shoes to school.

Why was money used?

• To look pretty

• Using barley and buttons was getting old

• Avoid the limitations of bartering

• So we can print and make more of it

Many economist think that pure competition is the best market structure for

In the United States, which form of market does the government attempt to control?

• oligopoly

• monopoly

• pure competition

• money being used