Exam #1: Introduction to Basics of Economics

Which of the following is an example of a good?

• Healthcare
• Car
• Video games
• Pizza

A service is best described as:

• Something essential for survival
• A physical object
• An action or activity performed for someone else
• A type of natural resource

If you choose to spend your money on a vacation rather than a new laptop, what is the opportunity cost?

• The value of the laptop and everything it can be used for in the future
• The value of the vacation (experiences, memories, time with friends/family, etc.)
• The value of both the laptop and the vacation
• The value of the next best alternative given up

Trade-offs are:

• Sacrificing one thing for another
• Getting everything without any consequences
• Ignoring all the available choices
• Choosing between two or more desirable options

Opportunity cost is:

• The total value of all alternatives
• The cost of goods and services combined
• The value of the original choice
• The value of the next best alternative given up

 In U.S. society today, which of the following is considered a need?

• Healthcare
• Designer clothing
• Streaming subscription
• Luxury car

A want is best described as:

• A type of natural resource
• Something essential for survival
• An item that is desired but not essential for survival
• An action or activity performed for someone else

If you have to choose between buying groceries or medicine, which economic concept are you experiencing?

• Supply and demand
• Monopoly
• Trade-offs
• Inflation

Which economic concept involves the decision and sacrifice of one thing for another?

• Inflation
• Trade-offs
• Supply and demand
• Monopoly
• Trade-offs and opportunity costs

Which of the following are examples of wants? (2)

• Newest model phone

• k-12 Education

• Shelter
• Higher (college, trade school) education