Basic Economic Concepts
What do economists mean by scarcity and how is scarcity related to choice? 2.
what are the opportunity costs of choices you make? 3.
what is the production possibilities curve? 4.
what is supply and demand? 5.
describe market equilibrium. 6.
if 6,000 persons are unemployed in a country of 600,000 capable workers; what is the unemployment rate? 7.
The opportunity cost of a decision is only the direct money cost of making that decision. a.
During periods of economic growth, a nation's production possibility frontier slopes up and to the right. a.
How does the shape of the production possibility frontier show that scarcity exists? a.
Down and to the right b.
Up and to the right c.
Down and to the left d.
Up and to the left 10.
If one country is absolutely better at one thing, the other country is absolutely better at producing another thing. a.
What is the business cycle?