PF/Econ Unit 1 Review

What is opportunity cost?

• What you choose

• What you give up when you make a choice

• The opportunity you take when you have a job interview

• The opportunity you when you turn down a job

Why is there scarcity?

• Entrepreneurs are scarce and companies need leaders

• Some people are poor while some people are wealthy

• Wants are limited but needs are not

• Resources are limited but wants are unlimited

Which economic system is present in the United States?

• Mixed Economy

• Command Economy

• Market Economy

• Traditional Economy

Read the following scenario. Which economic system is Jim most likely living under?

Jim works in a government owned restaurant. He was assigned the position of manager by the government. The government determines the menu for the restaurant and what the price of each meal will be. Jim has very little freedom to make his own choices for the restaurant.

• Market Economy

• Traditional Economy

• Command Economy

• Mixed Economy

A farmer decides to grow potatoes instead of wheat. What is the opportunity cost of growing the potatoes?

• The price of potato sales

• The output of wheat

• The time spent on the potato field

• The potato production

Individuals who create a product to sell or open a business are called what?

• Sharks

• Entrepreneurs

• Teachers

• Consumers

Which of the following is NOT a Basic Question of Economics?

• What to Produce

• Where to Produce

• How to Produce

• For Whom to Produce

Who answers the basic economic questions in a Mixed Economy?

• Consumers

• Business Owners

• The Central Government

• Both Consumers and Business Owners

a measure of the amount of output produced by a given amount of inputs in a specific period of time

• paradox of value
• wealth
• trade-off
• productivity

the sum of the skills, abilities, health, and motivation of people

• human capital
• paradox of value
• economics
• production