Econ Exam #2 - Fall '23

What is opportunity cost?

• your choice
• what you give up to make a choice

What is scarcity? 

• Having too many resources 
• Not  having enough resources 

A popular bakery has only a few ingredients left to make their products.  They could bake muffins or cookies, but they can’t make both.  The bakers decide to make cookies for their customers.  What is the opportunity cost of their decision?

• muffins 
• cookies 

Emelia has been invited to a sleep over at Chloe’s house for this Saturday.  Emelia has tickets to see her favorite band in concert that same night.  She decides to give the tickets to her sister and go to Chloe’s house.  What is the opportunity cost of her decision?

• seeing her favorite band 
• spending time at a friends house 

Economics is the study of how

• gov't allocates scare resources to satisfy people's unlimited wants.
• gov't supplies money to businesses to produce goods & services.
• people use their scarce resources to satisfy their unlimited wants.
• businesses supply unlimited goods & services with limited resources.

The factors of production is / are ___________ needed to produce goods and services.

• things
• resources
• energy
• people

Identify the factor of production. 

• land
• labor
• capital
• entrepreneurship

Identify the factor of production. 

• land
• labor
• capital
• entrepreneurship

These are the things we desire to have.

• Wants

• Goals

• Opportunity Costs

The factors of production include all of the following EXCEPT:

• land

• labor

• capital

• entrepreneurs