Economics Flashcard

Front

Scarcity is defined as “a limited supply of resources and…

Back

Unlimited wants for available resources

Front

Why do we have to make production choices about available resources?

Back

Scarcity

Front

Economics is the study of how

Back

People use their scarce resources to satisfy their unlimited wants

Front

Opportunity cost is the value of the _______ that had to be given up if the alternative was chosen

Back

The next best alternative

Front

In Nemo's scenario of choosing between studying for his math test and watching his favorite show, what is the opportunity cost?

Back

Watching TV

Front

Because of scarcity, people are forced to make _______ about how to utilize their resources

Back

Opportunity cost

Front

Tips earned at a restaurant job are considered

Back

Income

Front

Based on the above graph, which of the following is the best investment strategy in order to save for retirement at 65? Options: Invest in your 20s, stop investing after 10 years; Invest in your 20s, continuously invest until retirement; Invest in your 30s, continue to invest until retirement; Invest in your 40s, stop investing after 10 years

Back

Invest in your 20s, continuously invest until retirement

Front

A quick way to determine how long it will take your invested money to double is called

Back

Rule of 72

Front

What interest rate would you need to have in order to double $2500 of invested money in 12 years?

Back

72%