Intro to Economics

What does the concept of scarcity in economics refer to?

• A situation where resources are abundant

• The availability of free goods

• The unlimited wants with limited resources

• The study of how people use resources

What is opportunity cost?

• The total cost of producing one additional unit of a product

• The analysis of costs and benefits to make business decisions

• The cost of purchasing a good or service

• The cost of the next best alternative use of money, time, or resources when one choice is made over another

Which of the following best describes a market economy?

• An economy where the production and consumption of goods and services are based solely on tradition

• An economy that relies on habit, custom, or ritual to decide questions of production and consumption of goods and services

• An economy that operates by voluntary exchange in a free market and is not planned by a central authority

• An economy where the government makes all the decisions

What is the main characteristic of capitalism?

• Equal distribution of wealth among citizens

• Private ownership of property and businesses with minimal government intervention

• Central planning of the economy

• Public ownership of all property and a classless society

What role do incentives play in a free enterprise system?

• They encourage producers to take risks and consumers to make purchases

• They ensure that all goods and services are provided by the government

• They have no impact on the economy

• They discourage innovation and competition

__________study of how people (including companies/countries) make choices on buying, selling, using, and distributing goods/services.

• Economics
• Consumer Science
• Opportunity Costs
• Cost Benefit Analysis

__________ Things required to live such as food, shelter, clothing, air

• Needs

• Wants

• Tradeoffs

• Scarcity

In a bakery, _____________ are anything that is used to make bread or cakes.

• Resources

• Goods

• Services

• Needs

Your friend spends all night playing video games instead of studying for this quiz. What is the opportunity cost?

• Playing video games

• More time spent studying

• Eating noodles

• Voting in an election

Which of the following best refers to the additional cost a person or firm incur to produce one more unit?

• Consumer Benefit

• Intersection

• Marginal Benefit

• Marginal Cost