5 Written Questions
5 Matching Questions
- diminishing marginal return
- opportunity cost
- The 6 steps of all Economic Decisions
- a the most desirable alternative given up as the result of a decision
- b 1. People choose 2. People respond to incentives 3. People avoid costs 4. People voluntarily trade. 5. Economic systems influence our choices. 6. Our choices have consequences that lie in the future.
- c 1. Supply does not meet demand
2. Anything that has more than one use.
- d a level of production at which the marginal product of labor decreases as the number of workers increases
- e pleasant or unpleasant conditions that follow behaviors and affect the frequency of future behaviors
5 Multiple Choice Questions
- labor costs directly traced to items produced and services delivered
- ability or capacity of a good or service to be useful and give satisfaction to someone
- economic model that compares the marginal costs and marginal benefits of a decision
- exchange of goods and services among people and countries. Occurs when buyers and sellers freely and willingly engage in market transactions. Both parties benefit and are better off after the trade.
5 True/False Questions
Incentives → rewards or other stimuli that motivate us to act
Disposible Income → Income-taxes
marginal opportunity cost → the cost of the next best alternative that is given up in order to produce one more unit of another good
Decision Making Grid → A graph which people may enter alternatives, criteria, and ranks to come up with the best "mathematical" decision.
Indirect costs → Costs not directly related to the good or service. Often the costs associated with the opportunity costs.