Question

1. Based on what you learned in this lesson, match the following terms to their correct definitions:

1. Opportunity Cost
2. Incentive
3. Scarcity
4. Microeconomics
5. Macroeconomics
6. Economics
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a. The study of how a society manages its scarce resources
b. The limited amount of necessary or desired resources
c. Whatever makes a person act or choose
d. The study of individual economic actors. For example: how
individuals, households, or businesses interact economically
e.
What must be given up in order to gain something else
f.
The study of large economic systems and how their decisions
affect issues such as unemployment, price, and trade

Answer 1

Opportunity Cost: e. What must be given up in order to gain something else

Incentive: c. Whatever makes a person act or choose

Scarcity: b. The limited amount of necessary or desired resources

Microeconomics: d. The study of individual economic actors. For example: how individuals, households, or businesses interact economically

Macroeconomics: f. The study of large economic systems and how their decisions affect issues such as unemployment, price, and trade

Economics: a. The study of how a society manages its scarce resources