The Big Picture of Economics

A graph that shows the possible combinations of the two types of goods that can be produced when available resources are employed fully and efficiently is known as:

Hint: remember Monster's Inc.

• Time

• Efficiency

• Law of Increasing Opportunity Cost

• Production Possibilities Curve/Frontier

What does the phrase, "there's no such thing as a free lunch" mean in economic terms?

• it is not a real thing

• it is impossible

• everything has a cost to somebody, either in time, money or effort

• everything can be supported by the right ideas

When buyers can exercise their dominance over what is produced by freely deciding whether to buy or not to buy [a product or service] is called:

• Profit

• Government Involvement

• Specialization

• Consumer Sovereignty

When sellers are free to attempt to get the business of others by offering the best deal is known as:

• Competition

• Consumer Sovereignty

• Profit

• Private Property

The two main economic decision makers in the Circular Flow Model are:

• Businesses and Households (individuals)

• Government and Economics

• Competitors and Consumers

• People and Government

A place or situation where people buy and sell goods is known as a

• Landmine

• Market

• Factory

• Destination

Which of these points shows actual output, in which some resources are not being used to their maximum?

What is the term for the total market value of all final goods and services produced within a country in a given period?

• A) Gross Domestic Product (GDP)

• B) Net National Product (NNP)

• C) Gross National Income (GNI)

• D) Consumer Price Index (CPI)

Which economic concept explains the benefit lost when one alternative is chosen over another?

• A) Opportunity Cost

• B) Marginal Cost

• C) Sunk Cost

• D) Fixed Cost

What is the primary function of money in an economy?

• A) Medium of Exchange

• B) Store of Value

• C) Unit of Account

• D) All of the above