Basic Economic Concepts Review

what is given up when a choice is made

• Scarcity
• choice
• opportunity cost
• resources

The inability to satisfy all wants at the same time

• Scarcity
• choice
• opportunity cost
• resources

Ms. Lopes' Focus has finally bit the dust. Thus, she went down to Ronnie’s Auto Shop. She has narrowed her choices down to a Prius or a Volt but can only afford to buy one. She pulls out of the parking lot in a Volt. What is the opportunity cost of Ms. Lopes buying the Volt?

• opportunity cost

• choice

• Volt

• Prius

• Price

Why does scarcity exist?

• Wealthy private business owners keep all of the money for themselves.

• Governments control all the resources in society.

• There are unlimited needs and wants but limited resources from which to satisfy them.

• There are limited needs and wants but unlimited resources to satisfy them.

What does scarcity force societies to have to do?

• Make choices

• Make money

• Lose resources

• Have winners and losers.

The capacity to be useful and provide satisfaction is called what?

• Usefulness
• Pleasure
• Utility
• Scarcity

Which of the following is NOT a question that all societies must answer?

• What to produce

• How to produce

• Why to produce

• For whom to produce

The sum of people's skills, abilities, health, and motivation are called 

• Human capital
• labor
• capital good
• financial capital

Economics is the study of how people try to satisfy seemingly unlimited and often competing needs and wants through the careful use of relatively scarce resources.

• True
• False

Additional cost associated by producing one additional unit of product.

• Fixed Costs
• Average Costs
• Marginal Costs
• Emplicit Costs