Chapter 1 Intro to Economics Quiz

What is scarcity? 

• Giving something up to have something else
• Extra cost of production
• The condition that results form having unlimited wants with limited resources
• Rise in general level of prices and workers need more money

What is choice?

• The act of picking or deciding 
• The best option possible
• When something is very good
• When someone has no say in a matter

Something you can't live without

• Want

• Need

• Desire

• Value of Work

Why was money used?

• To look pretty

• Using barley and buttons was getting old

• Avoid the limitations of bartering

• So we can print and make more of it

What is opportunity cost?

• The cost of producing one more unit

• The value of the next best alternative foregone

• The total cost of production

• The cost of all resources used

A person who buys goods and services

• consumer
• entrepreneur
• resource
• currency

What does barter mean?

• to trade

• To give someone something (item) and get something in return

• to give in exchange

• All responses are correct.

Money & manmade objects owned by a business to help make a product or perform a service.

• are called industry.

• are called capital.

• are called services.

• are called goods.

Jamie has enough money to buy either a

Mountain Dew, or a Pepsi, or a bag of chips.

He chooses to buy the Mountain Dew. The

opportunity cost of the Mountain Dew is

• the Pepsi and the bag of chips.

• the Pepsi or the bag of chips, whichever

  the best alternative given up.

• the Mountain Dew.

• the Pepsi because it is a drink, as is the

  Mountain Dew.

What branch of economics studies the economy as a whole?

• Macroeconomics

• Microeconomics

• Econmics

• Positive Economics