Econ Unit 1 Review

What term means not enough to satisfy unlimited wants?

• Goods

• Scarcity

• Services

• Opportunity Cost

• Trade-Offs

What term means things people do for others, i.e. haircuts, teaching etc.

• Goods

• Scarcity

• Services

• Opportunity Cost

• Trade-Offs

What term means Everything you give up to get something else

• Goods

• Scarcity

• Services

• Opportunity Cost

• Trade-Offs

What term means the second best alternative that must be given up to get something

• Goods

• Scarcity

• Services

• Opportunity Cost

• Trade-Offs

You choose to go to Universal on Friday night with your friends, however your family was going out to dinner for your mothers birthday. What is your opportunity cost of going to Universal

• Your mothers birthday dinner

• Universal

• The cost of your ticket

• Your concession food

A firm operating at 'X' produces 70 whips and 60 saddles. It changes production to 'Y' producing 20 whips and 90 saddles. The opportunity cost of this production change is

• 20 whips

• 30 saddles

• 50 whips

• 60 saddles

The production possibility curve shows

• alternative combinations of two goods that an economy is capable of producing.

• the actual levels of production of two goods that the economy is achieving.

• alternative combinations of productive resources that can be used to produce two goods.

• the total value of two goods produced in one time period.

If an economy is producing at a point inside its production possibility frontier/curve, then

• consumption is greater than production.

• productive resources are not used to their full potential.

• production of capital goods is inadequate.

• it cannot benefit by specialisation and trade.

Land, Labor, Capital, and Entrepreneurship 

• Diversification
• Deductions
• Portfolio
• Factors of Production 

The opportunity cost of increasing production from 7 to 9 trucks is

• Scarcity
• 2 boats
• 2 trucks
• 3 boats