Intro to Economics (1)

Question 1

Opportunity Cost

Answer 1

Whatever opportunities you give up in exchange for doing something else instead

Question 2

Scarcity

Answer 2

The tension between our infinite wants and finite resources (like raw materials, workers, and time)

Question 3

Finish the sentence. “Scarcity means…”

Answer 3

“…we must make a choice”

Question 4

Incentives

Answer 4

The outside factors that motivate people’s choices

Question 5

Macroeconomics

Answer 5

Looks at the whole nation’s economy and its relationship to the global economies.

Question 6

Microeconomics

Answer 6

Looks at the small details of the economy – how people and firms affect specific markets.