What is Economics?

Front

What is scarcity?

Back

Not having enough resources

Front

A popular bakery has only a few ingredients left to make their products. They could bake muffins or cookies, but they can’t make both. The bakers decide to make cookies for their customers. What is the opportunity cost of their decision?

Back

muffins

Front

The economic problem is that

Back

resources are limited and wants are unlimited.

Front

Economics is the study of how

Back

people use their scarce resources to satisfy their unlimited wants.

Front

Scarcity arises because all societies have: limited productive resources to satisfy unlimited wants, unlimited productive resources to satisfy limited wants, limited needs and unlimited wants, unlimited needs and limited wants

Back

limited productive resources to satisfy unlimited wants

Front

The opportunity cost is the value of the _______ that had to be given up for the alternative that was chosen.

Back

the next best alternative

Front

Identify the factor of production: land, labor, capital, entrepreneurship

Back

labor

Front

Because of scarcity, people are forced to make _________ about how to use resources.

Back

Choices

Front

Economics is about allocating resources to produce and distribute which of the following?

Back

goods and services

Front

Which describes the purpose of doing a cost-benefit analysis? Options: producing a spreadsheet predicting costs, making a decision that maximizes benefits, deciding how much money to invest, calculating the high and low price for a good

Back

making a decision that maximizes benefits