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- 1. Multiple ChoiceWhat is the most basic problem of economics?ScarcityAllocationProductivitySpecialization
- 2. Multiple ChoiceWhat is it called when you choose between two possible uses for a resource, giving up one alternative for another?Trade OffsReal CostsBuilding materialsTrading spaces
- 3. Multiple ChoiceA popular bakery has only a few ingredients left to make their products. They could bake muffins or cookies, but they can’t make both. The bakers decide to make cookies for their customers. What is the opportunity cost of their decision?muffinscookies
- 4. Multiple ChoiceJoe was shopping for a truck. He has looked at similarly priced Ford, Chevrolet, Toyota, and
Ram models. After a lot of thought, he narrowed it down to either the Ford or the Chevrolet.
He selected the Ford because he liked the interior a little better. What was his opportunity
cost?FordChevroletToyotaRam - 5. Multiple ChoiceTrade-offs create this. It is the thing that you DO NOT chose. It is what you have to give up in order to get something else. It is your 2nd BEST ALTERNATIVE.Trade-offsOpportunity CostScarcityProduction Possibilities Curve
- 6. Multiple ChoiceOpportunity Cost is best defined asthe value of the next best alternative that is given up due to the choice you madeThe price you pay to purchase somethingThe benefit you gain by making a decisionThe amount of debt you take on by making a decision
- 7. Multiple ChoiceWhat is the production possibilities curve?a graph that shows how much an economy can produce between 2 goodshow much money something isthe opportunity one has to give up in order to gain something elseland, labor, capital, entrepreneurs
- 8. Multiple ChoiceIf a point lies on the curve this means the company is being efficient. If a point lies inside the curve, this tells the company what?They are being over efficientThey are not efficientIt is impossibleNone of the above
- 9. Multiple Choice
SSEF1(d) The opportunity cost of shifting production from "Point E" to "Point C" would be:30 cans of cola30 chocolate bars70 cans of soda20 chocolate bars - 10. Multiple Choice
If a natural disaster strikes, where would a production possibilities curve most likely shift
No shift
inward (as seen in Case 1)
outward (as seen in Case 2)
all of the above
- 11. Multiple ChoiceWhich phrase could be used to describe a PPC shifting outward?Resources wasted or idleEconomic GrowthInefficient use of resourcesA decrease in demand for a product
- Answer choicesTagsAnswer choicesTags