Economics and Personal Finance Unit 2 Review

Every decision involves trade-offs for which of the following reasons?

Everyone's resources are limited.

blank can be figured out easily in terms of money, or out of pocket costs.

Explicit costs

With marginal benefit a consumer can get satisfaction for which of the following?

Goods and services

An economy that is producing the maximum amount of goods and services is considered to be which of the following?

Growing efficient

blank are opportunity costs of a decision (foregone benefits) that is not defined in money.

Implicit costs

What is the additional cost of the use of consumption of a good or service?

Marginal cost

A graph showing all the combinations of goods and services that can be produced if all of society's resources are used efficiently is called which term?

Production possibilities curve

Which of the following is the fundamental economic problem which causes every person, family, business, and society to make economic choices?

Scarcity

In economics, the term capital goods refers to which of the following?

The equipment and structures used to produce goods and services

When deciding how to use resources, you need to evaluate the costs and benefits of each choice to decide which meets your criteria. What are these called?

Trade-offs

Marginal analysis can help a company determine pricing strategies.

True

Marginal analysis could be useful to a parent deciding whether to return to the workforce after the birth or adoption of a child, or student deciding what plans to make after graduating high school.

True

Scarcity is an economic problem with which all societies are faced.

True

Which of these doe economists use to show different combinations of output?

a production possibilities curve

In economics, marginal means

additional

A production possibilities graph shows:

different ways to use an economy's resources.

An example of a business using marginal analysis is when

they compare costs vs. benefits of hiring a new employee