18 Questions
What is the best alternative use of a resource called?
Opportunity cost
Which economic tool quantifies trade-offs?
Budget constraints
In economics, what does the economist always consider when talking about choices people make?
Budget constraints
Which term refers to the concept of giving up one thing to get something else?
Trade-off
Which type of economics focuses on facts and cause-and-effect relationships?
Positive economics
What concept does the budget constraint provide information about?
Trade-offs
What does the budget constraint equation indicate?
The more time spent on surfing the Web, the less time available for working at a part-time job.
In economics, what is defined as the study of how individuals and societies allocate scarce resources to satisfy unlimited wants?
Resource Allocation
What concept explains that spending more time on one activity means sacrificing time that could have been spent on another activity?
Opportunity Cost
Which type of economics focuses on analyzing what 'is' or 'was,' without making value judgments?
Positive Economics
If a person decides to allocate all 5 free hours to working at a part-time job, what principle does this decision reflect?
Scarcity Principle
Which economic principle is illustrated by the fact that spending extra time on one activity reduces the time available for another activity?
Trade-Off
What is the definition of scarcity according to the text?
Scarcity exists because people have unlimited wants in a world of limited resources.
How does society allocate scarce resources in a modern economy?
Society allocates scarce resources to those who are able and willing to pay for them.
What is the principle of resource allocation according to the text?
Scarce resources are allocated to those who are able and willing to pay for them.
What is the role of positive economics according to the text?
Positive economics describes economic phenomena without imposing value judgments.
What is the role of normative economics according to the text?
Normative economics determines the allocation of resources based on moral values.
How does the allocation of time determine the allocation of scarce resources?
The allocation of time determines the allocation of scarce resources by determining how much people are able and willing to pay for them.
Test your knowledge about scarcity, resources, and unlimited wants in a world of limited resources. Explore the concept of scarcity through examples like luxury items, everyday goods, and the imbalance between people's desires and available resources.
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