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

Land

Capital

Labor

Match the correct word with each statement.

• services

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

• goods

• actions or activities that one person performs for another

• human capital

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

• physical capital

• physical objects such as shoes

• productive

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

Match the following

• thinking on the margin

• an alternative that we sacrifice when we make a decision

• trade offs

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

• opportunity cost

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

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