TOPIC
1
Class
Review Questions
FUNDAMENTALS OF ECONOMICS
Date
Answer the questions below using the information in the Lesson Summaries on the previous
pages.
Lesson 1: Scarcity
1. What are two examples of goods and two examples of services?
2. Draw Inferences What is an example of the kinds of choices that a business would
have to make because of scarcity?
Lesson 2: Opportunity Cost and Trade-Offs
3. Use your own words to describe the trade-off known as "guns or butter."
4. Identify Cause and Effect Why does every decision involve a trade-off?
Lesson 3: Production Possibilities Curves
5. If a country chose to produce twice as many wooden chairs as before, how would
that affect its production of wooden tables?
6. Apply Concepts Many countries produce a single good upon which much of
their economy depends. That good might be coffee, wool, or oil. How might a
production possibilities curve help economists in such a country determine how
to diversify their economy?