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scarcity, trade-offs, opportunity cost

Total questions: 11

Worksheet time: 6mins

Name
Class
Date
1.

economic models are based on

a)

scarcity

b)

positive statements

c)

basic assumptions

d)

resources

2.

The opportunity cost of a good is

a)

its price in dollars and cents.

b)

the alternative goods forgone.

c)

the price of alternative goods foregone.

d)

none of the other options

3.
What is the production possibilities curve?
a)
a graph that shows how much an economy can produce between 2 goods
b)
how much money something is
c)
the opportunity one has to give up in order to gain something else
d)
land, labor, capital, entrepreneurs
4.

macroeconomics is involved with the

a)

economy in agregate

b)

free market

c)

individual allocations of scarce resources

d)

consumer and supplier

5.

economic models are

a)

based on assumptions

b)

subjective and never conclusive

c)

simplified

d)

valuable

e)

complex

6.

if a point falls in the interior of a ppc, there is a(n)

a)

decreasing opportunity cost

b)

economic growth

c)

boom of resources

d)

recession

7.

which of the following are scarce resources?

a)

sunlight

b)

land

c)

labor

d)

air

e)

clean water

8.

what is the term for giving up goods to obtain another?

a)

trade-offs

b)

opportunity costs

9.

economics is based on the

a)

market and free trade concepts

b)

allocation of scarce resources

c)

study of the stock market

d)

transfer of money

10.

a decreasing opportunity cost is

a)
b)
c)
11.

besides scarcity, economics is based on

a)

mathematical theories

b)

morals

c)

human behavior

d)

social structures