Quiz 1 Prep

Which one of the options below is NOT one of the 3 basic economic questions?

Economic goods have non-zero opportunity cost.

Resource allocation entails assigning available resources to specific uses chosen among possible alternatives

Which one of the options below is NOT a type of capital?

A PPC will be a straight, linear line if we are describing increasing opportunity costs.

Which option below is NOT associated with free markets?

Most of today's economies are free market economies.

Which option below is NOT one of the 4 factors of production?

Which one of the options below is NOT a key economic concept (one of 9)?

Any good or service that costs $0 is a free good.

Which point in the diagram below is impossible for an economy to reach given its current resources and technology?

Economic goods always cost more than $0.

Which option below is NOT one of the 3 factors used to describe an economic system?

The shape of the PPC is determined by

When an economy operates inside of the PPC (point F), it is not using all resources or is not producing efficiently.

Scarcity occurs because we have unlimited resources and limited wants/needs.

Opportunity cost is the value of the third best alternative that must be given up to obtain something else.