Economic Concepts and Decision Making

Sarah is unsure about attending her economics class. John explains the importance of understanding the three economic questions: what to produce, how to produce, and who gets to consume the goods. They discuss examples of production choices and methods, and the distribution of goods. Sarah decides to attend class, hoping for a musical surprise.

Why is Sarah hesitant to attend Mr. Hunsicker's class?

• She finds the class too easy.

• She is not understanding the material.

• She dislikes the teacher.

• She has already passed the class.

What are goods and services?

• Items that are only produced.

• Items that are only consumed.

• Items that are produced and consumed.

• Items that are neither produced nor consumed.

What is the first economic question societies must answer?

• When to produce?

• What to produce?

• Who consumes the products?

• How to produce?

Which of the following is NOT a method of production mentioned?

• Using animals

• Using human labor

• Using machines

• Using technology

What does the second economic question address?

• When to produce?

• Who consumes the products?

• How to produce?

• What to produce?

What is the third economic question about?

• Who gets to consume the products?

• When to produce?

• What to produce?

• How to produce?

Which of the following is an example of public consumption?

• Personal computers

• Private cars

• Public parks

• Military equipment

What does Sarah decide to do at the end of the conversation?

• Skip the class

• Attend the class

• Complain to the principal

• Drop the class

What day of the week is it when Sarah and John decide to attend the class?

• Wednesday

• Sunday

• Friday

• Monday

What do Sarah and John speculate about Mr. Hunsicker's class?

• He will give a surprise test.

• He will play music.

• He will bring a guest speaker.

• He will cancel the class.