Welcome to AP Economics

Which is true about scarcity?

• All resources are scarce but some are more scarce than others

• Scarcity will go away if people use their resources to their fullest potential

• Scarcity does not exist in places where people are rich

• Scarcity is not a reason why people have to make economic decisions

What is the best example of scarcity

• The restuarant is not crowded tonight 

• The school parking lot only has 150 spaces but 200 students want to park there

• There are 500 houses in the subdivision and 250 of them are occupied

• A person decided to dye her hair blonde instead of red

Which concept is most fundamentally related to scarcity?

• Choice

• External costs

• Benefits

• Learned behaviors

If you decide to relax (leisure) for 7 hours instead of 5, what is your opportunity cost?

• 2 hours of study

• 2 hours of leisure

• 5 hours of leisure

• 5 hours of study

The study of the economic behavior of individual persons, families, and businesses is known as​ (a)   .

• microeconomics

• macroeconomics

• production possibilities curves

• Ubernomics

You buy a chair on craigslist for $10. You then discover that this is a special chair you could sell for $100, you decide to keep the chair anyway. What is the opportunity cost?

• $10

• $90

• $100

• $110

A general increase in prices

• price

• inflation

• scarcity

• demand

Which type of economy has central ownership, the government, and lack of individual choice?

• Market

• Mixed

• Command

• Traditional

Capitalism is in what type of economy?

• Traditional

• Command

• Market

• Authortarian

Which of the following are markets involved in the circular flow model?

• Factor Market and Resource Market

• Labor Market and Product Market

• Factor Market and Product Market

• Resource Market and Labor Market