Unit 1 Intro to Economics

In class, we practiced using opportunity costs charts for time, but often it is used to make monetary choice. Which example best fits an opportunity cost chart for spending money?

• Watching a movie vs Watching a tv show

• Playing basketball vs Playing baseball

• Buying a new car vs. Buying a used car

• Reading a book vs. going for a walk

Scarcity impacts people's desire to move; which example shows people making a choice to improve their economic well-being?

• Moving to find a better job.

• Moving to live in a larger house.

• Moving to a wealthier neighborhood

• Moving to a city.

To entice students to keep up-to-date with economic current events, an instructor offers extra credit to students for participating in an online discussion forum, and this sparks a lively debate about environmental policy.

• Responding to Incentives
• Marginal Decision
• Opportunity Cost
• Marginal Analysis

An educational software company wants to expand the number of economics questions that it offers and is considering hiring another economist. It compares how much adding another worker will improve the product with the additional cost.

• Opportunity Cost
• Responding to Incentives
• Marginal Decision
• Trade Off List

A short-term lack of product. It is caused by severe weather, war, popularity, etc.

• Debt

• Money

• Barter

• Shortage

This is the vehicle that makes barter/trade so much easier. It comes in many different shapes but the most common today are cloth paper and small metal disks.

• Money

• Trade

• Barter

• Credit

Limited goods and services to fulfill unlimited wants and needs.

• Shortage
• Scarcity
• Surplus
• Profit

This is a list of all items that you can do with something (money, time, etc.). The purpose is to rank the items to start to decide which item is the most desirable.

• Credit

• Trade off

• Communism

• Entrepreneur

This is when you compare the two items from your trade-offs to decide which one is more valuable; the second choice is called?

• Surplus

• Economics

• Opportunity cost

• Cost/Benefit Chart

Which of the following examples shows that we agree with the idea of stretching our resources to combat scarcity?

• Strip Mining
• Recycling
• Water Pollution
• Nuclear Plants