Intro to Econ Review

What is the study of economics?

• The study of government policies.

• The study of choice

• the study of historical events and their impact on society.

• the study of financial markets and investments

What is the difference between a NEED and a WANT?

• A need is essential for survival, while a want is a desire that is not necessary.
• A need is something you can live without, while a want is something you must have.
• A need can be postponed, while a want must be fulfilled immediately.
• A need is a luxury item, while a want is a basic necessity.

What is the most valuable resource?

• Time
• Power
• Fame
• Money

Who is affected by scarcity?

• Only the wealthy are affected by scarcity.
• Scarcity only impacts businesses.
• Scarcity does not affect anyone.
• Everyone is affected by scarcity.

Why do societies have to make decisions about how resources will be used?

• To ensure everyone has equal access to resources.
• To eliminate competition among individuals.
• To create a surplus of resources for future generations.
• To efficiently allocate limited resources to meet the needs and wants of society.

What is Opportunity Cost?

• Opportunity cost is the total cost of production.
• Opportunity cost refers to the monetary cost of an item.
• Opportunity cost is the time spent on a decision.
• Opportunity cost is the value of the next best alternative that is given up when making a choice.

The study of the choices made by individual consumers is

• Microeconomics

• Macroeconomics

• Market analysis

• Advertising strategies

What is a trade-off in economics?

• A trade-off in economics is the sacrifice of one good or service for another.
• A trade-off is the government regulation of prices.
• A trade-off is the increase in demand for a product.
• A trade-off is the total cost of production.

All of the resources that are used to produce a good or service is called

• production materials
• real cost

• capital assets
• resources of labor

When the price of a good increases, the quantity demanded

• decreases
• fluctuates
• remains the same
• increases