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POB Chapter 1.2 Review

Total questions: 14

Worksheet time: 7mins

Name
Class
Date
1.

The basic economic problem is that consumers do not have enough products or services to choose from.

a)

true

b)

false

2.

____ means not having enough resources to satisfy every need.

a)

Opportunity cost

b)

Scarcity

c)

Trade-off

d)

Economic resources

3.

Scarcity forces you to make ____

a)

choices

b)

resources

c)

money

d)

none of the above

4.

_____ is the process of choosing which needs and wants will be satisfied.

a)

Opportunity cost

b)

Economic resource

c)

Production

d)

Economic decision making

5.

When you give something up in order to have something else, you are making a(n) ____.

a)

economic resource

b)

opportunity cost

c)

trade-off

d)

want

6.

You decide to buy a new video game instead of buying a new pair of pants. What is the trade-off in this example?

a)

the new pair of pants

b)

the new video game

c)

the money you're spending

d)

all of the above

7.

The value of the next-best alternative that you were not able to choose is known as the ____.

a)

trade-off

b)

scarcity

c)

economic resource

d)

opportunity cost

8.

The benefit you get from your choice should be _____ the benefit from the next-best choice that you did not choose.

a)

greater than

b)

less than

c)

equal to

d)

all of the above

9.

Which of the following is the first step in the decision-making process?

a)

identify the choices

b)

act on your choice

c)

evaluate the advantages & disadvantages of each choice

d)

define the problem

10.

For every decision, the problem must be clearly defined.

a)

false

b)

true

11.

It is not necessary to consider all of the alternatives when making a decision.

a)

true

b)

false

12.

It's rare that you'll have choices with many alternative options.

a)

false

b)

true

13.

The decision-making process is best to use when ____.

a)

you don't have enough money to pay for any of the choices

b)

you're facing a decision with several good alternatives

c)

you already know the choice you will make

d)

groups, rather than individuals, are making a choice

14.

John has 2 hours before having to go to his part-time job. He is deciding between studying for a math exam and taking a nap. If he chooses to take a nap, the opportunity cost of his decision is ____.

a)

the score he'll earn on the math exam

b)

the wages from his job

c)

the rest he is getting

d)

all of the above