1-2 Economic Choices - 1st Period

First and Last Name:

Select your period.

• 2nd Period
• 4th Period

1. The basic economic problem is that consumers have too many products and services to choose from.

• True
• False

2. The decision-making process is best to use when

• a. you already know the choice you will make
• b. you are facing a decision with several good alternatives
• c. groups rather than individuals are making a choice
• d. you don’t have enough money to pay for any of the choices

3. John has two hours before having to go to his part-time job. He is deciding between studying for a math exam and taking a nap. If John chooses to take a nap, the opportunity cost of his decision is

• a. the rest he is getting
• b. the score he will earn on the math exam
• c. the wages from his part-time job
• d. all of the above

4. The process of choosing which needs and wants will be satisfied is called

• scarcity
• opportunity cost
• trade-off
• economic decision-making
• basic economic problem

5. The mismatch of unlimited wants and needs and limited economic resources is known as

• scarcity
• opportunity cost
• trade-off
• economic decision-making
• basic economic problem

6. Not having enough resources to satisfy every need is called ____.

• scarcity
• opportunity cost
• trade-off
• economic decision-making
• basic economic problem

7. The value of the next best alternative that you were not able to choose is called ___________.

• scarcity
• opportunity cost
• trade-off
• economic decision-making
• basic economic problem

The fourth step in the decision-making process involves ___.

• a. defining the problem
• b. choosing the best alternative
• c. identifying the choices
• d. evaluating the advantages and disadvantages of each choice