Post on 29-Dec-2015
Economic ReasoningTest Review
What is any reward or benefit that motivates people to do
something
Incentive
What is a factor or disadvantage that
discourages people from doing something?
Disincentive
What is a tool used to choose among alternatives; weighing
the cost of a product or service against the benefit(s)
it will provide?
Cost/Benefit Analysisor
Risk/Reward Relationship
What is a decision made or course of action taken when
faced with a set of alternatives?
Choice
What do we need to help make a choice turn out the
way we want it to?
Information
What is it called when you consider the benefits and costs of the choices you
make?
Economic Way of Thinking
Should you consider your priority or goals when making
a choice?Yes/No
Yes
When making a choice, should you determine the most benefit for the least
cost?Yes/No
Yes
What is it called when you give up a litter of one thing in
order to get more of something else?
Trade-Off
What is an economic condition created by an
excess of human wants over the resources necessary to
satisfy them?
Scarcity
What is the value of the second-best alternative that a person gives up when making
one choice instead of another?
Opportunity Cost
What does the PACED Decision Model stand for?
ProblemAlternatives
CriteriaEvaluateDecision
Can the PACED Decision-Making Model help you make
better decisions?Yes/No
Yes
An incentive is a
reward
A disincentive is a
punishment
We use disincentives to measure our costs and our
benefits.True/False
False
We use the economic way of thinking to measure our costs
and benefits.True/False
True
What are some examples of limited resources?
Timemoneyspace
What is the problem of having limited resources known as?
scarcity
Choices have consequences.Yes/No
yes
What can be described as what you gave up when
making a decision?
Opportunity Cost
When you make a choice, it does not involve a trade-off.
True/False
False