1. SIMPO Review Game
Unit One

2. OPPORTUNITY COSTS
The best alternative given up when making an economic choice is known in economics as:

3. Which point on the PPC below is considered inefficient? E

4. LAW OF INCREASING OPPORTUNITY COSTS
What economic law explains the slope of the marginal cost curve?

5. Define Utility.
A MEASURE OF SATISFACTION OR BENEFIT USED IN ECONOICS

6. List the 2 factors that change an economy’s production possibilities causing a new curve to be drawn.
NEW PRODUCTIVE RESOURCES
NEW TECHNOLOGY

7. Use the PPC below to find the opportunity cost of moving from Point A to Point B 50 BUTTER

8. What is the Total Utility of consuming 3 bags of potato chips?
Candy Bars
Quantity
Total Utility
Bags of potato chips 1 10 8 2 16 14 3 18 4 19 21 5 20 23

9. If wheat is purchased and used to make flour then, wheat is a:
A. Service
B. Consumer Good
C. Capital Good

10. What is the Marginal utility of increasing consumption from 2 to 3 candy bars? 2utils
Quantity
Total Utility
Bags of potato chips 1 10 8 2 16 14 3 18 4 19 21 5 20 23

11. ALLOCATION
What term describes the decision about how resources are divided and distributed between alternatives?

12. TINSTAAFL is true because in economics there are always:
OPPORTUNITY COSTS

13. what is the economic problem you will encounter:
A. Too much of a good thing
B. Too little of a good thing (MB>MC)
C. Just enough of a good thing
Q Q Q3 Q

14. What economic goal is concerned with obtaining the greatest output from scarce resources?
EFFICIENCY

15. On the PPC graph below, at which point is it impossible for the economy to produce? F

16. A represents which curve? MARGINAL COSTSB
Q Q2 Q3 Q

17. What is the greatest disadvantage of a market economic system?
UNEQUAL DISTRIBUTION OF WEALTH

18. According to the data, what is the optimal quantity consumed ? Q2B
Q Q2 Q3 Q

19. On the PPC , which point represents efficient production? ABCD

20. INVISIBLE HAND
What did Adam Smith name the benefit to society received from the pursuit by consumers and producers motivated to earn individual profit in a market system?

21. What is the optimal number of ice cream scoops this consumer will buy?
Quantity of Ice Cream Scoops
Total Benefits
Marginal Benefits
Total Costs
Marginal Costs 1
200
100 2
350
150
250 3
450
500 4 50
800
300

22. CETERIS PARIBUS
What economic concept freezes the graph in time?

23. PRODUCERS AND CONSUMERS
Who determines prices in an economic system?

24. What is the most important goal in a market system?
FREEDOM