1. When you make a decision,
this is what you give up,
your second best choice
Opportunity Cost
1

2. What are the
basic economic
questions?
What?
How?
For whom?
2

3. What is the largest
opportunity cost of
attending college?
3

4. Name 3
characteristcs of a a
market economy
4

5. Who benefits from a voluntary,
economic transaction.
5

6. 7
According to the economic
perspective, You should go to a
movie if........
________________________________
________________________________
__________________________
6

7. This characteristic of a
market economy leads
to lower prices and
better quality and
service.
Competition
7

8. Name a
disadvantage of a
command economy
8

9. Name two things that
PPC curves tell us
9

10. What is the difference
between trade­offs and
opportunity costs
10

11. Wants > Availability of
resources = ?
Scarcity
11

12. Name a capital good
12

13. Give an exapmle of an
economic incentive
13

14. If something becomes more
costly, people generally do
Less
_____________ of that activity.
14

15. Needs vs. Wants
15

16. According to the
economic perspective,
what does every choice
have?
A Cost
16

17. This term means
maximizing output from a
given set of resources
Efficiency
17

18. A measure of the amount of
output produced by a given
amount of inputs in a specific
period of time.
Specialization
18

19. Individuals sell scarce
resources in this market
of the circular flow model
Resource Market
19

20. Give me an example of an
opportunity cost
20

21. 21

22. Which factor of
production includes
natural resources,
e.g., Oil.
Land
22

23. benefit or satisfaction
Utility
23

24. Why are butchers motivated to
produce steaks in a market
economy?
24

25. What was the coolest
document written in
1776?
The Wealth of Nations, by Adam Smith
25

26. TANSTAAFL
26

27. Why did Adam Smith
write about a pin factory
27

28. Why some essentials are
inexpensive and non­essentials
are very expensive
Paradox of Value
28

29. The sum of people's skills
abilities, and motivaiton.
Human Capital
29

30. Why is the economic
perspective unpopular?
30

31. What happens to
the opportunity
costs as you
move from a to b
to c. What term
describes this
effect?
31

32. 32