Econ Ch 1 sec 3

Alternative Choices, whenever people make economic decision.

• Opportunity Costs

• trade-offs

• cost benefit analysis .

• standard of living

The cost of the next best alternative use of money, time or resources when one choice is made rather than another. 

• Fixed cost
• Marginal benefit
• Sunk cost
• Opportunity cost

What is the problem with Idle Resources?

• Idle resources are essential for growth.
• Idle resources lead to increased productivity.
• Idle resources help in reducing costs.
• A country can not meet its full production potential

What happens to the production possibility frontier when there is economic growth?

• The production possibility frontier shifts outward.
• The production possibility frontier becomes vertical.
• The production possibility frontier remains unchanged.
• The production possibility frontier shifts inward.

Why is it valuable to take small steps when making economic decessions?

• Taking large leaps minimizes uncertainty.
• Making decisions quickly ensures better outcomes.
• Small steps lead to missed opportunities.
• Decisions can be stopped or reversed.

Consumers who own privately owned businesses, rather than government. 

• Free Enterprise Economy

• Non-profit organization leaders
• Corporate shareholders
• Government employees

The quality of life base on the possession of the necessities and luxuries that make life easier is known as

• standard of living
• economic status
• quality of life
• happiness

What is debated during political campaigns?

• Historical events and their significance.
• Social media trends and influencers.
• Weather patterns and climate change.
• Economic issues

  Balance the Federal Budget

  Inflation

  Strengthen the Economy

 Why is the study of Economics Vital?

• Economics only focuses on financial markets.
• The study of economics is irrelevant to everyday life.
• Economics is solely about predicting stock prices.
• understanding how the world works around us.

studying the world of economics is complex.

• true

• false