Unit 1 - Basic Economic Concepts

Which term best fits this definition: "the study of how to provide for unlimited wants given limited resources"

• Scarcity

• Three Basic Economic Questions

• Ecology

• Economics

• Ectocosmology

Scarcity exists because society has limited _______ but unlimited ________.

• wants/resources

• time/soup, salad, & breadsticks

• resources/wants

• supply/demand

• governments/potential

Which definition best fits for opportunity cost?

• The money it takes to buy something

• The value of your next best alternative

• The natural condition of humanity

• The price you pay for bad shrimp

• Land, Labor, Capital, & Entrepreneurship

Assume that the Inkwell Isles' PPC looks like this: If they shift production from point B to point C, what is their opportunity cost?

• 4 units of Good Y

• -4 units of Good Y, +4 units of Good X

• 4 Units of Good X

• 3 Units of Good Y, 8 Units of Good X

• 7 Units of Good Y, 3 Units of Good X

What can cause an outward shift of the PPC?

• A multi-year drought that depletes natural resources

• Unemployment

• Underutilization of Resources

• Too much to eat

• Technology that makes workers more productive

You asked your economist friend if they'd like to join you for a "free lunch" and they scoffed at you. Why?

• TNSTAAFL (every choice involves a trade-off)

• L&O:SVU

• They already ate lunch

• They don't believe in lunch as a concept

• There's got to be a catch. Is this like a timeshare thing?

Which market structure makes up the majority of world economies?

• Free Market/Enterprise

• Mixed Economy

• Capitalism

• Command Market

• Traditional

Which of these are services (not goods)?

• A Cheeseburger

• An Oil Change

• A Pet Turtle

• Grooming for your Pet Turtle

• Food for your Pet Turtle

Which of these is not a Factor of Production™©®?

• Land

• Value

• Capital

• Entrepreneur(ship)

• Labor

Which of these do Households supply (provide) in the Resource Market?

• Goods

• Income

• Labor

• Taxes

• Rent