Economics, Unit One -- Introductory Terms/Concepts

________ is the most basic economic problem.

• Scarcity
• Labor
• Greed
• Capital

The maximum amount of time, money, or resources given up in order to obtain a good/service.

• Value Judgment

• Value

• Opportunity Cost

• Wants and Needs

The personal opinions, often acquired through lived experiences, that influence the economic choices (trade-offs) that individuals make

• Values

• Wants and Needs

• Opportunity Cost

• Value Judgments

An economic decision between two or more goods/services, influenced by value judgments

• Opportunity Cost

• Value

• Trade-Off

• Scarcity

The difference between a good and a service is that:

• Goods are available in unlimited quantities and services are not

• Goods are tangible (touchable) and services are not

• Services are available in unlimited quantities and goods are not

• Goods are more highly valued than services

Opportunity Cost is best defined as

• The best rejected alternative you give up when making a decision 
• The price you pay to purchase something 
• The benefit you gain by making a decision 
• The amount of debt you take on by making a decision 

Kenneth has an Economic test tomorrow and knows that if he stays up and studies until 11 p.m. he has a good chance of earning an A on the test. However he is really tired and knows that if he goes to bed at 10:00 p.m. he can easily earn a B on the exam. What is Kenneth's opportunity cost if he goes to bed at 11:00 p.m.

• Earning an A on the exam

• Earning a B on the exam

• Losing one hour of sleep

• Gaining one hour of sleep

Svetlana is deciding what to do after high school. Right now her two options are: go to college or enter the workforce/get a job. She can only choose one. Svetlana decides to get a job. Which of the following is the opportunity cost of her decision?

• Time

• A High School Diploma

• Getting a Job

• Attending College

Which factor of production includes all naturally occurring materials before they are refined or altered in any way?

• Land

• Capital

• Entrepreneurship

• Labor

Which of the following would be an example of human capital? 

• The amount of workers who work in a Nike factory
• The skills of the shoe designers at Nike 
• Philip Knight, the CEO of Nike 
• The land that the Nike headquarters is located on in Beaverton Oregon