EPF - UNIT #1 REVIEW

1. (EPF.E.1.4) ALL OF THE FOLLOWING ARE ACCURATE STATEMENTS ABOUT SCARCITY EXCEPT

• 1. SCARCITY REQUIRES PRODUCERS & CONSUMERS TO MAKE DECISIONS

• 1. SCARCITY & SHORTAGES ARE VIRTUALLY THE SAME CONCEPT

• 1. SCARCITY IS PERMANENT

• 1. SCARCITY IS BASED ON INPUTS & OUTPUTS THAT ARE DESIRABLE TO CONSUMERS & PRODUCERS

1. (EPF.E.1.4) WHAT ASSUMPTION(S) IS/ARE MADE IN CLASSICAL ECONOMICS ABOUT PRODUCERS & CONSUMERS?

• 1. THEY ARE SELFISH & GREEDY

• 1. THEY ARE ALTRUISTIC & SELFLESS

• 1. THEY ARE RATIONAL & SELF-INTERESTED

• 1. THEY ARE IRRATIONAL & IMPULSIVE

YOU HAVE 40 HOURS DURING THE WORKWEEK. TASKS, HOURS REQUIRED, & MOTIVATING FACTORS ARE LISTED BELOW:

• 10 HOURS IN TEAM MEETINGS - REQUIRED FOR EMPLOYMENT

• 10 HOURS IN POTENTIAL CLIENT MEETINGS - TO GAIN NEW CUSTOMERS

• 10 HOURS IN CURRENT CLIENT MEETINGS - TO KEEP EXISTING CUSTOMERS

• 10 HOURS IN BUILDING AN ADVERTISING CAMPAIGN - TO GAIN NEW CUSTOMERS

• 10 HOURS IN UPDATING A PLATFORM USED BY CLIENTS - TO KEEP EXISTING CUSTOMERS

YOU DECIDE TO ALLOCATE YOUR TIME TO TEAM MEETINGS, CURRENT CLIENT MEETINGS, & POTENTIAL CLIENT MEETINGS. YOU THEN MUST DECIDE BETWEEN UPDATING THE CLIENT PLATFORM OR BUILDING AN ADVERTISING CAMPAIGN, AND YOU ULTIMATELY DECIDE TO UPDATE THE CLIENT PLATFORM.

(EPF.E.1.4) IN THIS SCENARIO, THE DECISIONS TO ALLOCATE YOUR 40 HOURS AMONG THESE FIVE TASKS IS CALLED ___.

• 1. OPPORTUNITY COST

• 1. TRADE-OFFS

• 1. INCENTIVES

• 1. MARGINAL BENEFIT

YOU HAVE 40 HOURS DURING THE WORKWEEK. TASKS, HOURS REQUIRED, & MOTIVATING FACTORS ARE LISTED BELOW:

• 10 HOURS IN TEAM MEETINGS - REQUIRED FOR EMPLOYMENT

• 10 HOURS IN POTENTIAL CLIENT MEETINGS - TO GAIN NEW CUSTOMERS

• 10 HOURS IN CURRENT CLIENT MEETINGS - TO KEEP EXISTING CUSTOMERS

• 10 HOURS IN BUILDING AN ADVERTISING CAMPAIGN - TO GAIN NEW CUSTOMERS

• 10 HOURS IN UPDATING A PLATFORM USED BY CLIENTS - TO KEEP EXISTING CUSTOMERS

YOU DECIDE TO ALLOCATE YOUR TIME TO TEAM MEETINGS, CURRENT CLIENT MEETINGS, & POTENTIAL CLIENT MEETINGS. YOU THEN MUST DECIDE BETWEEN UPDATING THE CLIENT PLATFORM OR BUILDING AN ADVERTISING CAMPAIGN, AND YOU ULTIMATELY DECIDE TO UPDATE THE CLIENT PLATFORM.

 (EPF.E.1.4) IN THIS SCENARIO, THE CHOICE OF BUILDING AN ADVERTISING CAMPAIGN IS A ____.

• 1. OPPORTUNITY COST

• 1. TRADE-OFFS

• 1. INCENTIVES

• 1. MARGINAL BENEFIT

YOU HAVE 40 HOURS DURING THE WORKWEEK. TASKS, HOURS REQUIRED, & MOTIVATING FACTORS ARE LISTED BELOW:

• 10 HOURS IN TEAM MEETINGS - REQUIRED FOR EMPLOYMENT

• 10 HOURS IN POTENTIAL CLIENT MEETINGS - TO GAIN NEW CUSTOMERS

• 10 HOURS IN CURRENT CLIENT MEETINGS - TO KEEP EXISTING CUSTOMERS

• 10 HOURS IN BUILDING AN ADVERTISING CAMPAIGN - TO GAIN NEW CUSTOMERS

• 10 HOURS IN UPDATING A PLATFORM USED BY CLIENTS - TO KEEP EXISTING CUSTOMERS

YOU DECIDE TO ALLOCATE YOUR TIME TO TEAM MEETINGS, CURRENT CLIENT MEETINGS, & POTENTIAL CLIENT MEETINGS. YOU THEN MUST DECIDE BETWEEN UPDATING THE CLIENT PLATFORM OR BUILDING AN ADVERTISING CAMPAIGN, AND YOU ULTIMATELY DECIDE TO UPDATE THE CLIENT PLATFORM.

(EPF.E.1.4) YOUR DECISIONS WERE MOTIVATED BY KEEPING YOUR EXISTING CUSTOMERS OVER GAINING NEW CUSTOMERS. THIS MOTIVATION IS KNOWN AS ___.

• 1. OPPORTUNITY COST

• 1. TRADE-OFFS

• 1. INCENTIVES

• 1. MARGINAL BENEFIT

A STORE MANAGER IS DECIDING HOW MANY NEW CHECKOUT LANES NEED TO BE ADDED TO EFFICIENTLY MOVE CUSTOMERS IN AN OUT. SHE HAS ESTIMATED THE FOLLOWING DATA BASED ON CONSULTING WITH MANAGERS ACROSS THE DISTRICT.

(EPF.E.1.4) BASED ON THE CHART, HOW MANY ADDITIONAL CHECKOUT LANES SHOULD THE MANAGER PLACE IN THE STORE?

• 1

• 2

• 3

• 4

Match the following

• OPPORTUNITY COSTS

• (EPF.E.1.4) RANGE OF ALTERNATIVES AVAILABLE TO ECONOMIC ACTORS

• TRADE OFFS

• (EPF.E.1.4) MOTIVES THAT GUIDE OUR ECONOMIC DECISION-MAKING

• LAW OF DIMINISHING RETURNS

• (EPF.E.1.4) NEXT-BEST ALTERNATIVE THAT GIVEN UP DUE TO DECIDING ONE ALTERNATIVE OVER ANOTHER

• INCENTIVES

• (EPF.E.1.4) MARGINAL BENEFIT OF PRODUCING AN ADDITIONAL UNIT TENDS DECLINES FROM ONE UNIT TO THE NEXT

(EPF.E.1.4) WHICH OF THE FOLLOWING IS NOT ONE OF THE FOUR FACTORS OF PRODUCTION?

• NATURAL RESOURCES / LAND

• LABOR

• TIME

• ENTREPRENEURSHIP

(EPF.E.1.4) IRON, COPPER, AND NICKEL PLAY AN IMPORTANT ROLE IN INDUSTRIAL PRODUCTION. THESE FACTORS ARE CALLED ____, THAT ARE PROCESSED INTO FINISHED GOODS.

• NATURAL RESOURCES / LAND

• PHYSICAL CAPITAL

• LABOR

• ENTREPRENEURSHIP

(EPF.E.1.4) KNOWLEDGE, TRAINING, EXPERIENCE THAT WORKERS NEED TO BE PRODUCTIVE ARE

• FINANCIAL CAPITAL

• LABOR

• PHYSICAL CAPITAL

• HUMAN CAPITAL