Econ Unit 1 Review: Scarcity & the Science of Economics

What is the fundamental economic problem facing all societies today?

Match the following "Needs" and "Wants" into the correct categories:

Groups:

(a) Needs

,

(b) Wants

• Cell Phone

• Clothing

• Food

• Shelter

• Internet Access

• Car

Economic products are divided into two categories. Any useful/tangible item that can satisfy a want or need is known as a​ (a)   . Work that is performed (intangible) for someone is called a​ (b)   .

• Good
• Service

Match the different types of "Goods" to their correct definition.

• Used to make other goods/services

• Capital Good

• Will last less than 3 years

• Durable Good

• Intended for final use by individuals

• Consumer Good

• Will last 3+ years

• Nondurable Good

According to Economist Adam Smith, what are the two things something needs to have monetary value?

• Opportunity Cost & Usefulness

• Scarcity & Utility

• Wealth & Scarcity

• Utility & Capital

What does TINSTAAFL stand for?

What is the value of the next best alternative/choice in an economic decision?

(What do you call what you gave up?)

Which of the following is NOT one of the three basic economic questions?

• WHAT to produce?

• HOW to produce?

• WHY to produce?

• FOR WHOM to produce?

Use your knowledge of the Four Factors of Production to match up the following items:

Groups:

(a) Land

,

(b) Labor

,

(c) Capital

,

(d) Entrepreneur

• Jeff Bezos

• Electrician

• Natural Resources

• Risk-Taker

• Assembly Line

• Farm Land

• Skills/Abilities

• Tool

Use the PPF pictured to answer the question:

What is wrong with Point X?

• It is producing more coffee than sugar.

• It is producing more sugar than coffee.

• It is not ideal.
  (Have more resources available)

• It is impossible.

  (Not enough resources)