24 questions
The Welch family has saved some money. They can spend it on a holiday to Spain or build a swimming pool in their back yard. They decide to spend the money on a swimming pool. What is the opportunity cost of their decision?
vacation
swimming pool
The economic problem is that
resources are limited and wants are limited.
resources are unlimited and wants are limited.
resources are limited and wants are unlimited.
resources are unlimited and wants are unlimited.
The opportunity cost of a good is
its price in dollars and cents.
the alternative goods forgone.
the price of alternative goods foregone.
none of the other options
The opportunity cost is the value of the _______ that had to be given up for the alternative that was chosen.
all the items
the next best alternative
the least important alternative
everything except the item that was chosen.
This Economics term refers to the things you use to create goods and services.
Resources
Materials
Wants
Scarcities
True/False: Human wants will always exceed available resources.
TRUE
FALSE
These are the things we desire to have.
Wants
Goals
Opportunity Costs
When "wants are greater than the resources available to satisfy them," it is called...
Scarcity
Needs
Opportunity Cost
None of these answers
Because of scarcity, people are forced to make _________ about how to use resources.
Choices
Opportunities
Houses
Desires
When you make a choice, you often have to give up other options...those things are called the...
Opportunity Cost
Missed Opportunities
Misused Resources
Scarce Options
The factors of production include all of the following EXCEPT:
land
labor
capital
entrepreneurs