1. Econ Chapter One Quiz Review Let’s come up with some good answers to these questions…

2. There is a high cost to building a new high school in San Jacinto. Does that mean it should not be built? Consider the city’s growth (area and pop.) Consider the budget Consider the need Consider other “intangibles”

3. What is the difference between microeconomics and macroeconomics? Microeconomics… deals with behavior and decision making by small units, such as individuals and firms…help to explain how prices are determined and how individual economic decisions are made. Macroeconomics… deals with the economy as a whole, including employment, GDP,GNP, inflation, economic growth, and the distribution of income. The relationship between the two is…

4. What is scarcity? …is the condition that results from society not having enough resources.

5. You attend a public high school- there is no admission or tuition. Does it follow then that there is no opportunity cost to your attending school? Opportunity cost is: … the cost of the next best alternative use of money, time, or resources when one choice is made rather than another. Then, the opportunity cost of attending high school is…?

6. What is an economic system? What are the two major economic systems in the world today? An economic system is an organized way of providing for the wants and needs of people. Command economy- economic decisions are made by the government. Market economy- People and firms act in their own interests.

7. The U.S. Economy vs Chinese Economy Free-enterprise economy (market) Socialist economy (command) Mixed Economy Both have both… Which definition would you use to describe each?