Eco Review

Tickets for a popular concert are selling out quickly. Many fans are eager to purchase them, but the venue can only accommodate a limited number of attendees. This is an example of:

• Trade-off

• Scarcity

• Production Possibility

• Opportunity Cost

A student has a limited amount of time to study for two important exams that are scheduled on the same day. They must decide how to allocate their study time between both subjects, knowing that spending more time on one will mean less time for the other. This is an example of:

• Trade-off

• Scarcity

• Production Possibility

• Opportunity Cost

A recent college graduate decides to take a year off to travel the world instead of starting a job immediately. The salary and work experience they miss out on during that year reflect the cost of their choice. This is an example of:

• Trade-off

• Scarcity

• Production Possibility Curve

• Opportunity Cost

A country has to decide how to allocate its resources between producing consumer goods and capital goods. The various efficient production points where the country can produce different amounts of both goods are illustrated on a graph. This graph is called the:

• Trade-off

• Scarcity

• Production Possibility Curve

• Opportunity Cost

In a bakery, one of the key ingredients for making bread, such as flour, runs out. What is likely to happen to the bakery's production process?

• Production costs decrease.

• Production continues as usual.

• Production may halt or be limited.

• Production becomes more efficient.

When a company decides to allocate its budget to advertising rather than product development, what best describes the company's situation?

• The benefits of a decision.

• The alternatives available.

• The sacrifices made when choosing one option over another.

• The total cost of production.

In economics, resources required for the production of goods and services are categorized into specific groups. Which of these are the 4 factors of production?

• Land, capital, labor, and entrepreneurs.

• Goods, services, capital, and land.

• Money, resources, labor, and services.

• Natural resources, machinery, labor, and market.

If an economy can produce various combinations of food and shelter along a production possibilities curve (PPC), then if we increase the production of housing along the PPC, which of the following is correct?

• They are being over efficient

• They are being inefficient

• They are still efficient, just at another point.

• It is not impossible with the given resources

A small island economy produces only two goods: coconuts and fish. As the islanders increase their production of coconuts by giving up fishing, they find that the amount of fish they give up for each additional coconut remains the same. This situation describes:

• Increasing opportunity cost

• Decreasing opportunity cost

• Constant opportunity cost

• Zero opportunity cost

A family purchases a new refrigerator for their home to store food and drinks. This item is primarily used for personal consumption. This type of good is known as a:

• Durable good

• Consumer good

• Capital good

• Intermediate good