Unit 1 Review (for the Blind)

True or False: Scarcity only affects poor countries.

• True
• False

The fact that we cannot produce beyond the Production Possibilities Curve is because of ...

• Opportunity Cost
• Choice
• Scarcity
• Efficiency

SATISFACTION you receive from eating an ADDITIONAL slide of pizza?

• Marginal cost
• Marginal benefit
• Opportunity cost
• Diminishing utility

Economic term for happiness or satisfaction

• Surplus
• Incentive
• Utility
• Profit

True or False: When kids at school swap food with each other, they are acting in self-interest.

• True
• False

Which point on the PPC would represent an inefficient use of resources?

• Point A
• Point C
• Point Y
• Point X

Which point is not currently possible without investing in additional resources?

• Point A
• Point B
• Point Y
• Point X

An efficient point on the PPC means

• Goods are produced quickly
• Technological growth is needed
• Resources are used to produce the maximum goods possible
• Goods are distributed fairly

Which of the following would NOT shift an economy's PPC?

• An increase in population
• Doubling the amount of capital in the economy
• An increase in the money supply
• A technological advance

A PPC shows...

• The best combination of goods to produce
• The plans for increasing production
• Resources are limited by choices
• What can be produced with various combinations of resources