Scarcity & Opportunity Cost

Which of the following is a focus of economics?

• Literature

• Choices

• Art

• Music

How many types of incentives are there?

• Two

• Three

• Four

• Five

What does PPC stand for in economics?

• Production Possibilities Curve

• Product Price Calculation

• Profit Percentage Chart

• Production Planning Committee

Which of the following is not a factor of production?

• Land

• Labor

• Capital

• Technology

What is the primary benefit of Human Capital?

• Increases physical assets

• Enhances worker efficiency and innovation

• Provides financial resources

• Supplies raw materials

Which type of capital is essential for technological advancement?

• Physical Capital

• Human Capital

• Financial Capital

• Natural Capital

What economic principle is demonstrated by the production possibilities curve?

• Law of diminishing returns

• Law of supply

• Law of demand

• Law of opportunity cost

What is a positive incentive?

• Rewards incentives that make people better off.

• Penalties that make people worse off.

Opportunity cost (OC) can be described as

• the number 2 alternative in your list of choices

• the next best choice and one you didn't choose

• your number 1 tradeoff when making a choice

• your most desirable tradeoff

• all of these answers are examples of opportunity cost (OC)

A popular bakery has only a few ingredients left to make their products.  They could bake muffins or cookies, but they can’t make both.  The bakers decide to make cookies for their customers.  What is the opportunity cost of their decision?

• muffins 
• cookies