Unit 1, Topic 1 Review Quiz

What is given up when an economic decision is made.

• Opportunity Cost

• Scarcity

• Trade-Offs

• Capital Gains

Alternative choices when making an economic decision

• Productions Possibilities Curve

• Opportunity Cost

• Scarcity

• Trade-Offs

Economics is the study of

• How people make and spend money.

• How people use unlimited resources to satisfy their limited wants.

• How people use scarce resources to satisfy unlimited wants and needs.

Scarcity is

• the condition humans daily face in which we have unlimited human wants in a world of limited resources

• a saying that communicates the idea that all decisions cost something

The total utility definition states:

• The usefulness, benefit or satisfaction a consumer gains from consuming a product.

• The satisfaction gained from consuming a quantity of an economic good, measured in utils.

• The added consumer satisfaction from consuming a quantity of a good.

• The consumer's satisfaction from consuming a quantity of a good.

What is Marginal Cost?

• cost of my second choice

• additional cost of the use or consumption of another G or S

• cost of a good or service

• cost of my first choice

I bougt a cup of Starbucks coffee for $1.50. I decided to have another cup. What was my cost?

• My opportunity cost was $1.50

• My Marginal Cost was $1.50

• There was no marginal or opportunity cost

Amount of personal satifisfaction or pleasure one gets from consuming a good or service

• Utility

• Marginal Utility

• Marginal costs

• Negative Utility

The additional benefit of the use/comsumption of an additonal good or service

• Marginal benefit

• Marginal cost

• Utility

According to the economic decision rule, you should do an action/activity or make a purchase

• if MC>MB

• if MB>MC

• MU<NU