U1 Economics Review

What does scarcity in economics refer to? (HS.E.IC.1 / DOK 1)

• Unlimited resources

• Limited resources

• Unlimited wants

• No opportunity costs

If a student has to choose between studying for a test or attending a concert, what is the opportunity cost of choosing to attend the concert? (HS.E.IC.1 / DOK 2)

• The money spent on the concert

• The time spent at the concert

• The grade the student might have achieved on the test

• The enjoyment of the concert

A city must decide between funding a new park or improving public transportation due to budget constraints. How might scarcity affect the city's decision? (HS.E.IC.1 / DOK 3)

• The city will ignore the budget and fund both options.

• The city will choose based on which option has the higher cost.

• The city will evaluate which option offers the greatest benefit to the community.

• The city will choose based on which option has the lowest cost.

What is an example of an incentive used to encourage employees to perform better? (HS.E.IC.2 / DOK 1)

• Increased work hours

• A bonus or raise

• More training sessions

• Additional paperwork

How might a tax credit for electric vehicles influence consumers' buying decisions? (HS.E.IC.2 / DOK 2)

• It will make consumers less likely to buy electric vehicles.

• It will make electric vehicles more expensive.

• It will make electric vehicles more attractive to consumers.

• It will have no effect on consumers' decisions.

If a government introduces a subsidy for renewable energy sources, what might be the long-term impact on energy producers? (HS.E.IC.2 / DOK 3)

• They may reduce their investment in renewable energy.

• They might stop producing energy altogether.

• They may increase their production of renewable energy sources.

• They will likely raise prices on all energy sources.

In a cost-benefit analysis, what do 'marginal costs' refer to? (HS.E.IC.3 / DOK 1)

• The total cost of production

• The additional cost of producing one more unit

• The fixed costs of production

• The opportunity cost of not producing

If a company is deciding whether to produce 100 more units of a product, which of the following would be considered a marginal benefit? (HS.E.IC.3 / DOK 2)

• The total cost of production

• The profit from selling the additional 100 units

• The fixed overhead costs

• The initial cost of developing the product

A local government is considering a new community center. Perform a cost-benefit analysis by listing a potential marginal cost and a marginal benefit of this project. (HS.E.IC.3 / DOK 3)

• Marginal cost: The initial construction expense; Marginal benefit: Improved community engagement

• Marginal cost: The cost of land; Marginal benefit: Increased taxes

• Marginal cost: The cost of materials; Marginal benefit: Increased traffic

• Marginal cost: The cost of labor; Marginal benefit: Decreased property values

In a competitive market, what typically motivates producers to make more of a product? (HS.E.IC.4 / DOK 1)

• Decreased prices

• Increased demand

• Reduced competition

• Lower production costs