James Scarcity OC Final Exam Review

Front

Economics can be described as the study of

Back

Choices

Front

The condition of scarcity can be described as one that

Back

exists when our unlimited needs/wants exceed our limited resources

Front

What was Tom's opportunity cost after selecting the Ford over the Honda?

Back

Honda

Front

What are alternatives in the Rational Decision-Making Model?

Back

the various options (tradeoffs) a person has for a given problem or situation.

Front

What do rational people consider when making decisions?

Back

The marginal benefit and marginal cost

Front

The fundamental problem in Economics, which is why we study economics, is scarcity.
True or False?

Back

True

Front

If one follows the PACED decision-making model to choose the good or service that grants them greater marginal benefit than cost, they have made a

Back

Rational decision

Front

You make an economic decision which has an opportunity cost. In economic terms what are all the other possible alternatives known as?

Back

Tradeoffs