0. Basic Principles of Economics

Which of the following is typically considered the first step in the economic decision-making process?

Which of the following is NOT a possible opportunity cost of attending college?

Which of the following best describes an opportunity cost?

Which of the following statements best demonstrates the economic concept of scarcity?

Why does every society face difficult choices in deciding what to produce?

In the context of scarcity and choice, what is opportunity cost?

If goods or services are scarce, which of the following must occur?

Which of the following best describes the factors that determine the opportunity cost of a decision?

Why are tradeoffs necessary in economics?

In microeconomics, what is the opportunity cost of holding currency (cash) rather than investing those funds?

Opportunity cost is best defined as:

What is the likely impact on an economy if it fails to address the three fundamental questions of economics (what to produce, how to produce, and for whom to produce)?

Which of the following best describes the difference between a shortage and scarcity?

Why is it important to evaluate trade-offs and opportunity costs when making choices in economics?

What does the concept of scarcity explain?