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1. | The fundamental economic problem is ____________ .
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| A) opportunity cost
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| B) scarcity
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| C) tinstaafl
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| D) entrepreneurship
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2. | The three basic economic questions everyone must answer are ___________________.
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| A) WHEN to produce, WHAT to produce, WHERE to produce
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| B) HOW much money to make, HOW to produce, WHERE to sell
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| C) WHAT to produce, HOW to produce, FOR WHOM to produce
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| D) HOW to produce, HOW MUCH to produce, WHERE to sell
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3. | The economic concept of __________ is the sum of those economic products that are tangible, scarce, useful, and transferable from one person to another.
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| A) value
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| B) utility
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| C) scarcity
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| D) wealth
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4. | The __________, a location or other mechanism that allows buyers and sellers to exchange a certain economic product, is the key feature of the circular flow of economic activity.
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| A) tradeoff
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| B) market
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| C) producer
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| D) economy
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5. | Opportunity cost is the__________.
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| A) tools, equipment, and factories used in the production of goods and services
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| B) condition that arises because society does not have enough resources to produce all the things people would like to have
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| C) various combinations of goods and/or services an economy can produce when all productive resources are fully employed
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| D) cost of the next best alternative use of money, time, or resources when one choice is made rather than another
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6. | A diagram representing various combinations of goods and/or services an economy can produce when all productive resources are fully employed is the __________ .
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| A) decision making grid
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| B) free enterprise frontier
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| C) cost-benefit analysis
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| D) production possibilities frontier
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