ECON QUIZ 1

What term refers to the fundamental problem of limited resources and unlimited human wants and needs?

What term refers to the act of selecting one alternative from a range of options, driven by the fundamental concept of scarcity?

What term refers to the value of the next best alternative that must be given up when a choice is made?

What term refers to the method used to evaluate the benefits and costs of different options, often expressed in monetary terms, to make informed decisions?

What term refers to the practice of evaluating the costs and benefits of one additional unit of something, or a “marginal change”?

What term refers to the school of thought which believes that economics as a subject should pass value statements, judgments, and opinions on economic policies, statements, and projects?

What term refers to the objective study of economic facts, cause-and-effect relationships, and actual economic behavior, focusing on what “is” rather than what “should be”?

What term refers to the necessity for people to make choices because their wants are unlimited, but their income and resources are limited?

What term refers to the need for societies to make choices about how to use scarce resources to satisfy unlimited wants and needs?

What term refers to the graph that shows all possible combinations of two goods a consumer can afford given their fixed income and the prices of those goods?

What term refers to the fundamental inputs that are used to produce goods and services in an economy?

What term refers to the graph that shows the maximum combination of two goods an economy can produce with its available resources and technology, assuming full and efficient employment?