Basic Economics

______ is the value of the next best alternative foregone (given up) when a choice is made

_____is something you must have to survive or to do something

____ is something you desire but it is not essential

Resources are _____ in relation to wants

Choices need to be made about how to ______ resources among competing uses

How many economic agents are?

• Two

• Three

• Four

• Five

A rise in the minimum wage decreases employment.

• Positive Statement

• Normative Statement

The government should increase spending on healthcare.

• Positive Statement

• Normative Statement

A production possibility frontier (PPF) shows the maximum possible ________ of two goods or services an economy can achieve when all resources are fully and efficiently employed

PPFs are usually curved because of the