PFLE Unit 1 & 2 Review

What are the benefits we give up when we choose one option over another?

• Alternatives

• Trade-offs

• Opportunity Costs

• Production Possibilities

What do economists use to show the combinations of goods and services and economy can produce using all resources?

• PPC/PPF

• Demand Curve

• Supply Curve

• Circular Flow Model

What is another term for a "factor" used to produce a good or service?

• Scarce good

• Resource

• Rival good

• Product

Which of the following is an example of economic scarcity?

• You experiencing less joy after each slice of pizza

• A business willing to increase production of t-shirts

• a farmer deciding whether to grow corn or soybeans

• Popularity increasing for electric vehicles

All economic systems experience _, which forces them to make choices and trade-offs

• inflation

• scarcity

• unemployment

• diminishing return

Giving up an hour of sleep to gain an extra hour of studying for a major test is an example of

• budget line

• trade-off

• fixed cost

• voluntary exchange

Producing goods in a way that minimizes the amount of required resources is an example of what economic goal?

• efficiency

• equity

• security

• freedom

What are TRUE statements about households/individuals in a circular flow model?

• Households sell goods and services in the product market

• Households sell factors of production in the factor/resource market

• Households buy goods and services in the product market

• Households buy factors in the resource market

What happens to the price of strawberries if an article is published saying they taste bad and are unhealthy?

• Demand will decrease leading to a decrease in price

• Demand will increase leading to a decrease in price

• Demand will decrease leading to an increase in price

• Demand will increase leading to an increase in price

If quantity supplied exceeds quantity demanded you will have a _ and price should _.

• shortage, rise

• shortage, fall

• surplus, fall

• surplus, rise