PFL

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 the scenario where Nemo decides that studying for the math test is more important than watching his favorite TV 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

Choices

Front

What is a production possibility curve?

Back

A graph that shows how efficiently an economy can produce a combination of two goods.

Front

Janet wishes to increase the productivity of her art design studio. In order to do so, she is considering buying more technology and also hiring additional employees. As both investments would require considerable capital, Janet wants to make sure she has carefully considered the direction her company should take based on changing trends in technology and the labor force. Which of the following tools might help her make the best decision for her company? A supply graph, A production possibility curve, A demand graph, A circular flow model

Back

A production possibility curve

Front

If a company decided that only producing 4 automobiles a year was unprofitable and instead decided to produce 6 automobiles, how many forklifts would the company lose out on producing at the same time?

Back

9

Front

The process of quantifying the costs and benefits of a decision is known as

Back

Cost-Benefit analysis