Economics basic concepts

What is the fundamental concept of economics?

• scarcity

• opportunity cost

• TINSTAAFL

• Money

Land, Labor, Capital and Entrepreneurs

• Factors of choices

• Factors of Production

• Production choices

• Supply and demand

Man made goods used to produce other goods

• capital

• land

• labor

• entrepreneurs

Cost of the next best alternative

• opportunity cost

• tradeoff

• resources

• capital

Which of the following would not cause a right shift (Economic Growth) of the PPC?

• New resources

• New or better capital

• increased demand

• better education

A point beyond the Production Possibilities Curve (PPC) is ___________________, a point below the PPC is ________________

• Fully employed, inefficient

• inefficient, unattainable

• unattainable, inefficient

• unattainable, Fully employed

Any point along the Production Possibilities Frontier is considered

• unattainable

• unavailable resources

• maximum efficient use of resources

• inefficient

Which of the following is not an example of capital?

• Oil

• tools

• tractors

• computers

Unlimited wants with limited resources

• opportunity cost

• scarcity

• trade offs

• Entrepreneurs

Continued or additional cost of doing something again

• cost

• opportunity cost

• marginal cost

• marginal benefit