The Big Picture of Economics

The study of how we make decisions in a world in which resources are limited is called...

• Economics

• Microeconomics

• Macroeconomics

• Opportunity Cost

Looking at the "big picture" of the economy describes...

• Economics

• Microeconomics

• Macroeconomics

• Trade-Off

The cost of the next best use of your time or money when you choose to do one thing rather than another.

• Scarcity

• Cost-Benefit Analysis

• Opportunity Cost

• Trade-Off

____________ occurs whenever we do not have enough resources to produce all the things we would like to have.

• Economic System

• Economics

• Macroeconomics

• Scarcity

Macroeconomics looks at the economy as

• individuals

• a whole; the big picture

• the smaller picture

• it is not a component of economics

In the Circular Flow Model, the two main markets are:

• Private & Public property

• Factor Market & Product Market

• Government and Consumers

• Real Estate and Business

Because of scarcity and costs, people weigh their options and make decisions based on benefits and costs is known as:

• Physical Captial

• Labor

• Marginal Analysis

• Human Capital

The Big Picture of Economics

• Microeconomics

• Macroeconomics

• Economic Systems

• Scarcity

The study of how societies use limited resources to fulfill their wants and needs is known as

• Economics

• Sociology

• Political Science

• Anthropology

Which of the following best describes the concept of 'opportunity cost'?

• The total cost of all possible choices

• The cost of the next best alternative foregone

• The cost of producing one more unit of a good

• The cost of all resources used in production