Unit 1.1 & 1.2 quiz

What is scarcity? 

• Having too many resources 
• Not  having enough resources 

Opportunity cost is your ____.

• first choice

• second best alternative

• trade-off of a choice

• allocation of a good or service

Joe was shopping for a truck. He has looked at similarly priced Ford, Chevrolet, Toyota, and
Ram models. After a lot of thought, he narrowed it down to either the Ford or the Chevrolet.
He selected the Ford because he liked the interior a little better. What was his opportunity
cost?

• Ford
• Chevrolet
• Toyota
• Ram

Because of scarcity, people are forced to make _________ about how to use resources.

• Choices

• Opportunities

• Houses

• Desires

As an individual consumes an additional good or servce, their satisfaction decreases

• Marginal Utility

• Law of Diminishing Marginal Utility

• Incentives

• Productivity

The additional benefit of the use/comsumption of an additonal good or service

• Marginal benefit

• Marginal cost

• Utility

When have you made a rational decision in economics?

• Whenever marginal cost is greater than marginal benefit

• Whenever marginal benefit is greater than marginal cost

You have 9 shirts. You are considering buying a 10th shirt for $30. You could also save that $30 toward purchasing a new smartphone. The additional satisfaction of having a 10th shirt to choose from when getting dressed in called a(n)............

• Economic service

• Marginal cost

• Marginal benefit

• Incentive

You have 9 shirts. You are considering buying a 10th shirt for $30. You could also save that $30 toward purchasing a new smartphone. Having $30 less to purchase that new smartphone is called a(n)

• Economic service

• Marginal Cost

• Marginal Benefit

• Incentive

Anything used to produce an economic good or service is called a _____________.

• Want

• Need

• Resource

• Capital