Economics - prior knowledge (1)

What is the fundamental economic problem?

• Excess
• Surplus
• Abundance
• Scarcity

Money that has intrinsic value, such as gold or silver coins, is an example of fiat money.

• True

• False

Define opportunity cost.

• The value of the next best alternative that is given up when a decision is made.
• The cost of the least desirable option
• The cost of the chosen alternative
• The cost of the most expensive option

Define supply and demand.

• Supply is the amount of a good that consumers are willing to sell at various prices, while demand is the amount of a good that producers are willing to buy at various prices.
• Supply is the amount of a good that consumers are willing to sell at a fixed price, while demand is the amount of a good that producers are willing to buy at a fixed price.
• Supply refers to the amount of a good that producers are willing to sell at various prices, while demand refers to the amount of a good that consumers are willing to buy at various prices.
• Supply is the amount of a good that consumers are willing to buy at various prices, while demand is the amount of a good that producers are willing to sell at various prices.

Define Gross Domestic Product (GDP)

• GDP is the total value of all foreign aid received by a country
• GDP is the total value of all stocks and bonds in a country
• GDP is the total value of all goods and services produced within a country's borders in a specific time period.
• GDP is the total value of all imports and exports of a country

Define Elasticity

• The ability of a material to dissolve in water when stretched
• The ability of a material to conduct electricity when stretched
• The ability of a material to change color when stretched
• A measure of how much the quantity demanded or supplied of a good respond to a change in price.

Fill in the blank:
Economics is often divided into two main branches:
____________ and __________

• Microeconomics and Macroeconomics
• Physics and Astronomy
• Biology and Chemistry
• History and Geography