Chapter 1- Section 3

Question 0

Using a ______ is one way to analyze an economic problem

Answer 0

Decision-making grid

Question 1

Alternative choices, whenever making an economic decision

Answer 1

Trade offs

Question 2

What does a Decision-making grid force you to consider?

Answer 2

Number of relevant alternatives; requires you to identify the criteria used to evaluate the alternatives; forces you to evaluate each alternative based on the criteria you selected

Question 3

The cost of the next best alternative use of money, time, resources when one choices made rather than another

Answer 3

Opportunity cost

Question 4

A diagram representing various combinations of goods and or services and economy can produce when all productive resources are fully employed

Answer 4

Reduction possibilities frontier

Question 5

No point can be reached outside the curve. Why?

Answer 5

There are no extra resources available to produce; is it called a production possibilities frontier to indicate the maximum combinations of goods and/or services that can be produced

Question 6

A way of thinking about a problem that compares the cost of an action to the benefits received

Answer 6

Cost-benefit analysis

Question 7

One in which consumers and privately owned businesses, rather than the government, make the majority of the what, how, and for whom decisions

Answer 7

Free enterprise economy

Question 8

The quality-of-life based on the position of the necessities and luxuries that make life easier

Answer 8

Standard of living

Question 9

The study of economics help us to become better what?

Answer 9

Decision-makers both in our personal lives and in the voting booths