An Economic Way of Thinking
Scarcity & Choice
Opportunity Costs
Exchange
100
the study of choices that people make to satisfy their wants and needs
What is economics
100
_____ + ______ = scarcity
What is limited resources and unlimited wants/needs
100
the most valued opportunity or alternative you give up to do something
What is opportunity costs
100
where people exchange one set of goods for another
What is barter
200
the study of choices made by individual institutions
What is microeconomics
200
what to produce, how to produce, for whom to produce
What are the 3 fundamental questions
200
this is considered to be opportunity cost
What is the second best alternative
200
process where producers and consumers agree to provide one type of item in return for another
What is exchange
300
people who make the things that satisfy consumer’s wants and needs
What are producers
300
model that shows all the possible combinations two goods or services that can be produced within a given period
What is production possibility curve
300
standardized mean of exchange, any item that is readily accepted by people in return for goods and services
What is money
400
Anything that people use to make or obtain what they want or need
What are resources
400
the use of the smallest amount of resources to produce the greatest amount of output
What is efficiency
400
allows consumers to use items before completing payment for the merchandise
What is credit
500
the four resources
What is natural, human & capital resources, and entrepreneurship
500
the usefulness to a person
What is utility
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