Honors Unit 1 Study Guide

Opportunity Cost is best defined as

• The best rejected alternative you give up when making a decision 
• The price you pay to purchase something 
• The benefit you gain by making a decision 
• The amount of debt you take on by making a decision 

Which of the following is a need?

• clothes
• car
• job
• smart phone

Which of the following describes a trade-off?

• Having more than you want, or need.
• When people work in jobs where they produce a few special goods, or services.
• When you get a little lees of one thing in order to get a little more of something else.

• Something one person does for someone else.

What is the fundamental problem of economics? 

• How to keep consumers out of debt?
• How to fulfill our unlimited wants and needs with limited resources?
• How to figure out the way to make the most money?
• How do we ensure all people get a college education?

Antonio has an Economic test tomorrow and knows that if he stays up and studies until 11 p.m. he has a good chance of making an A on the test.  However he is really tired and knows that if he goes to bed at 10:00 p.m. he can easily make a B on the exam.  What is Antonio's opportunity cost if he goes to bed at 11:00 p.m.

• An A on the exam 
• making a B on the exam 
• Losing one hour of sleep
• gaining one hour of sleep

 The difference between a good and a service is that:

• Goods are available in unlimited quantaties and services are not 
• Goods are tangible and services are not 
• Services are available in unlimited quantaties and goods are not 
• goods help satisfy unlimited wants and services do not

What type of economic system allows the government to decide what to produce, how to produce and for whom to produce?

• Market
• Mixed
• Command
• Traditional

A country's economic system attempts to deal with the problem of not having enough resources to meet people's needs and wants.

• Scarcity

• Labor

• Greed

• Capital

In my country producers decide what and how much to make based on what people want to buy (two possible answers)

• Traidtional

• Command

• Market

• Mixed

In my country, the government has some involvement in the economy.

• Traditional

• Command

• Market

• Mixed