Economics Unit 1

What is Economics?

• The study of the supreme court decisions

• The study of the choices people make to satisfy their unlimited wants and needs.

• The study of the environmental rights in society

• The study of historical choices in American Politics

A limited amount of resources to meet unlimited wants and needs.

• Scarcity

• Opportunity Cost

• Bartering

• Economics

What are the 3 basic Economic questions?

• Who, what, and for when to buy?

• Why, for what, and for whom to decide?

• When, why, and how to galvanize?

• What, how, and for whom to produce?

Which of the following is an example of a trade off?

• Buying popcorn or ice cream

• Going to class and having fun

• Wearing a sweater during the winter

• None of the above

The value of the next best alternative that is given up

• Opportunity Cause and Effect

• Opportunity Cost

• Scarcity

• All the above

Your friend spends all night playing video games instead of studying for this quiz. What is the opportunity cost?

• Playing video games

• More time spent studying

• Eating noodles

• Voting in an election

What is trade?

• focusing on one aspect of production

• —When producers and consumers voluntarily agree to sell their personal rights

• When businesses and government provide information on consumers

• —When producers and consumers voluntarily agree to provide one good or service in return for another.

Focusing in on one or a few aspects of production

• Production Possibilities Curve

• Opportunity Cost

• Specialization

• Barter

Exchanging chips for hats is an economic example of

• Specialization

• Barter

• Scarcity

• Absolute Advantage

What is a problem with the barter system?

• It allows for the production possibilities curve to shift

• It can be difficult to figure out what is scarce

• It utilizes varying currencies

• Consumers do not know the real value of a good