Intro to Econ Review

What is Economics?

• The process the government uses to determine what to spend its money on

• The study of decision making and how that applies to using ones resources

• A field of study concerning who deserves to receive goods and services

• The understanding that all resources need to be bought and sold

What is Scarcity?

• The idea that people only have so many things to choose from

• When a certain resource becomes limited locally, just for a period of time

• The concept that all resources are limited or finite

• A classification for animal species that no longer exist

Define Trade Off:

• When you miss out on something by accident

• When a sports team swaps particular players for ones from another team

• When you take something away from someone else by force

• When you choose to give up one thing in order to gain another

True or False? Costs are what you give up when making a decision, benefits are the things you gain

• True

• False

What is Opportunity Cost?

• When you get the chance to pay for something

• The one and only thing you are forced to give up when making a decision

• The best alternative option you miss out on when making a choice

• The amount of money it takes to purchase your favorite thing

True or False? Needs are anything you think you must have in order to get through your day, such as your phone or your car

• True

• False

True or False? Wants are the things people absolutely depend on for survival, such as food, water, and shelter

• True

• False

Which of the following best explains the concept of guns vs. butter?

• The idea that the government needs to feed its people in order to keep them safe

• The balance a government needs to find between domestic and military spending

• The desire of a society to have a surplus of baking supplies (for war)

• The concept that food is more important and essential than protection