New PFLE unit 1 review

Blane decides to go to the movies instead of going to work. The option that Blane did not choose is known as...

• Alternative factor

• Opportunity Cost

• Additional Benefit

• Factor of Production

Which point on the graph represents "underutilization of the economy?"

• A

• B

• F

• E

Which point is not possible today but could be possible in the future?

• A

• B

• F

• E

The law of demand states that as prices decrease

• Quantity demand increases.

• Demand increases.

• Quantity demand decreases.

• Demand decreases.

Buying a Honda Civic and then suddenly seeing Honda Civics everywhere is an example of

• Confirmation bias

• Self-Limiting Bias

• Ocerconfidence

• Self-serving bias

In which market do you sell your labor?

• Product market

• Resource market

• Resource sector

• Product sector

Limited resources and unlimited wants leads to the fundamental economic problem of

Which is an example of the Law of Demand?

• An increase in the price of Ice Cream will cause an increase in the quantity of ice cream demanded.

• An increase in the price of Ice Cream causes no change in the quantity of candy bars demanded.

• An increase in consumer income causes the demand for Ice Cream to increase.

• A decrease in the price of Ice Cream causes an increase in the quantity of Ice Cream demanded.

What best describes sunk cost fallacy?

• Abandoning a project due to lack of resources
• Investing in a new opportunity based on past success
• Continuing an endeavor because of previously invested resources, despite the likelihood of future losses.
• Continuing a project because of new potential benefits

Confirmation bias refers to the tendency to:

• Allow preexisting beliefs to distort logical reasoning
• Cling to one’s initial conceptions after the basis on which they were formed has been discredited
• Search randomly through alternative solutions when problem solving
• Look for information that is consistent with one’s beliefs