Econ Unit 1 Test

Vocab

100

This term represents something that is both limited and desirable

Scarcity

200

This word is the economic term for happiness/satisfaction

Utility

300

This term represents the next best option you could have picked

Opportunity Cost

400

This term represents one party holding more information than the other

Asymmetric information

500

These two terms are paths that lead to scarcity

Competition and Rationing Devices

Incentives

100

This incentive motivates based on "doing the right thing."

Moral Incentive

200

Recycling soda cans to help the environment, but doing it for the 5 cents per can you get for trading them in. 

Economic Incentive

300

Buying a movie ticket to see a movie your friends want to watch. 

Social Incentive

400

This incentive motivates people based on it's ability to entice with a material reward. 

Economic incentive

500

Someone wants you to donate money to charity. You don't really want to but your friends are donating to the cause. You choose to do it because you want to fit in. Which incentive is this?

Social Incentive

Production

100

Gold is what factor of production?

Land

200

An oven for a kitchen at McDonalds is which factor of production?

Capital

300

Elon Musk, founder of Tesla, represents which factor of production?

Human Capital/Enterprise

400

The miners who mine coal are what factor of production?

Labor

500

What are the three main questions asked in production? (Hint: Can just give the first word to each question)

- What? How? For who?

PPC

100

This point on the PPC represents something that cannot be reached due to a lack of resources. 

Impossibility

200

This graph is used by economists which explains the maximum efficiency of production.

Production Possibility Curve

300

A PPC Chart measures the production and opportunity cost of ____ things. (Hint: It's a number)

Two

400

This point on a PPC graph represents when production is not being as efficient as possible. 

Underutilization

500

This type of advancement is capable of shifting the PPC to the right, making what was once impossible, possible.

Technological

Trade and Markets

100

A place where buyers and sellers meet to trade

Market

200

What is the most important determinant of a market?

Prices

300

All of the other options you give up when making a decision

Trade-Offs

400

Buyers and Sellers are also known as _______ and _________

Consumers and Producers

500

What is one important thing that comes from trade? (Hint: There's three)

Everyone's best interest, keeps prices lower, allows for specialization