Topic 1 Assessment KEY TERMS AND IDEAS Production Possibilities Curve 1. How do goods differ from services? 2. Why is scarcity an Important concept in economics? 25 3. Why is the role of an entrepreneur so Important? 20 4. List the three main factors of production. 5. How do opportunity costs shape economic Shoes (millions of pairs) 6. What is marginal cost and what is its role in decision 10 making? 7. What does a production possibilities curve show? 8. Why is efficiency an important economic goal? 5 10 15 20 25 CRITICAL THINKING Watermelons (millions of tons) 9. Draw Inferences Why are the fastore of production necessary for the production of goods and sanjesh 17. Analyze Graphs