Introduction to Economics

What is the fundamental economic problem that all societies face?

• Abundance of resources
• Scarcity of resources
• Equal distribution of resources
• Unlimited resources

Which term refers to the value of the next best alternative that is forgone when a choice is made?

• Scarcity
• Opportunity cost
• Wants
• Needs

Which of the following is NOT a basic economic question?

• What to produce?
• How to produce?
• For whom to produce?
• When to produce?

Which of the following is an example of a need?

• Smartphone
• Shelter
• Designer clothing
• Vacation

Goods or services that are not necessary, but that we desire or wish for. Examples: video games, toys, concert tickets, etc.

• Demand

• Needs

• Wants

• Presents

What is the best example of scarcity

• The restuarant is not crowded tonight 
• The school parking lot only has 150 spaces but 200 students want to park there
• There are 500 houses in the subdivision and 250 of them are occupied
• A person decided to dye her hair blonde instead of red

How do you satisfy your unlimited wants in a world of limited resources?

• by making more money

• by making choices

• by stealing

• by setting a budget

It is your second choice-what you give up when you make a decision.

• Choice

• Opportunity Cost

• Scarcity

• Shortage

If you were invited by friends to go to the movies but you instead to stayed in and watched Netflix what is the opportunity cost of your choice?

• Watching Netflix

• Going to the movies with your friends

• Taking a nap

• Ordering takeout

What factor of production does this picture represent?

• Land

• Capital

• Labor

• Entrepreneurship