Unit 1 Personal Financial Literacy Review

True or False: A shortage is the same as scarcity

What happens when the price of a product increases (according to the law of supply)?

What shifts the supply curve to the right?

What is equilibrium price?

What happens when demand increases but supply stays the same?

What happens to opportunity cost as you move along the production-possibilities curve?

True or False: Firms buy labor, land, and capital from households in the resource market.

True or False: A shortage occurs when demand is greater than supply.

What happens when there is a surplus of goods?

What is scarcity?

If a business decides to produce more of one product, what is the cost of the next best alternative given up?

What does the government provide in the circular flow model?

True or False: The law of demand states that as price increases, quantity demanded also increases.

Which of the following is a non-price determinant of demand?

What does a point inside the production-possibilities curve (PPC) represent?

If a natural disaster destroys a key resource, what happens to supply?

Households earn income by selling what to businesses?

What do households provide in the circular flow model?

What does the production-possibilities curve (PPC) show?

Which of the following is NOT a factor of production?