Introduction to Economics

Goods or services that are not necessary, but that we desire or wish for. Examples: video games, toys, concert tickets, etc.

• Demand

• Needs

• Wants

• Presents

The reason why you can't have everything you want is because of ___________________.

• Opportunity Cost

• Scarcity

• Incentive

• Choice

What is the best example of scarcity

• The restuarant is not crowded tonight 
• The school parking lot only has 150 spaces but 200 students want to park there
• There are 500 houses in the subdivision and 250 of them are occupied
• A person decided to dye her hair blonde instead of red

What is scarce in the following scenario: You have to go to work but if you work a lot of hours you are going to be very tired

• Work
• Money
• Sleep
• Time

How do you satisfy your unlimited wants in a world of limited resources?

• by making more money

• by making choices

• by stealing

• by setting a budget

The study of how people seek ways to meet their wants and needs by making choices is called?

• Economics

• Scarcity

• Capitalism

• Entrepreneurs

It is your second choice-what you give up when you make a decision.

• Choice

• Opportunity Cost

• Scarcity

• Shortage

If you were invited by friends to go to the movies but you instead to stayed in and watched Netflix what is the opportunity cost of your choice?

• Watching Netflix

• Going to the movies with your friends

• Taking a nap

• Ordering takeout

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?

• muffins 
• cookies 

The Welch family has saved some money.  They can spend it on a vacation to the Grand Canyon or build a swimming pool in their back yard.  They decide to spend the money on a swimming pool.  What is the opportunity cost of their decision?

• vacation 
• swimming pool