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Questions and Answers
Which of the following best defines scarcity?
Which of the following best defines scarcity?
- The ability of a country to produce more goods and services than it consumes
- The unlimited wants and needs of people with limited resources to satisfy them (correct)
- The study of how individuals, businesses, and governments make choices about how to allocate scarce resources
- The process of making decisions based on the costs and benefits of alternatives
What does a Production Possibilities Graph show?
What does a Production Possibilities Graph show?
- The total value of all final goods and services produced within a country in a given time period
- The amount of money that individuals and businesses are willing and able to spend on goods and services
- The maximum amount of goods and services that an economy can produce given its resources and technology (correct)
- The relationship between the price of a good and the quantity of that good that consumers are willing and able to buy
What are the 3 key economic questions?
What are the 3 key economic questions?
- How much to produce, when to produce, and where to produce
- Who to produce for, why to produce, and when to produce
- What to produce, how to produce, and for whom to produce (correct)
- Where to produce, what to produce, and how to produce
Which of the following best defines opportunity cost?
Which of the following best defines opportunity cost?
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What is the main incentive for a business?
What is the main incentive for a business?
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How can an economy increase its production possibilities?
How can an economy increase its production possibilities?
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What does the Circular Flow Model represent?
What does the Circular Flow Model represent?
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What is market failure?
What is market failure?
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What are public goods?
What are public goods?
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Give an example of a positive externality.
Give an example of a positive externality.
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How do consumers tell the government and businesses what they want?
How do consumers tell the government and businesses what they want?
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