Scarcity and Opportunity Cost

Economics is the study of ​ (a)   . ​ (b)   is the fundamental economic problem.

• Scarcity
• Opportunity cost
• Productivity
• choice

Match the Factor of Production

a

b

c

d

Entreprenuership

Labor

Capital

Land

Match the correct word with each statement.

• productive

• When we create or buy physical capital to accomplish a job , we usually become more

• physical capital

• physical objects such as shoes

• human capital

• actions or activities that one person performs for another

• services

• the skills and knowledge gained by a worker through education and experience

• goods

• all human made goods that are used to produce other goods

Match the following

• trade offs

• deciding whether to do or use one additional unit of some resource

• opportunity cost

• an alternative that we sacrifice when we make a decision

• thinking on the margin

•  the most desirable alternative given UP as a result of a decision

If Karen gets up early and studies three hours for her test she is likely to get an A. If she sleeps in, she will probably get a C. What is the opportunity cost of sleeping in?

• three additional hours of sleep

• three additional hours of study

• a C

• a A