Economics: Reviewing the Basics

Front

The value of the next best alternative that has to be given up for the action that is chosen is called the:

Back

opportunity cost

Front

According to the law of supply, higher prices prompt producers to:

Back

produce more

Front

This is the money left over after all of the costs of production have been paid.

Back

profit

Front

According to the law of demand, when the price of an item goes up, the quantity demanded:

Back

falls

Front

What goods and services should be produced, how they should be produced, and who should share in what is produced are three basic questions addressed by:

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all economic systems

Front

Adam Smith's "invisible hand" refers to the role of: the government, the market, customs and beliefs, factors of production

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the market

Front

In a capitalist system (free market), most property is:

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private property

Front

Economics is primarily concerned with which of the following? future costs of goods, values and objectives of society, use of resources, methods of production

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use of resources

Front

The condition that results from society not having enough resources to produce all the things people would like to have is called:

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scarcity

Front

A car used by a messenger service is a type of: capital, labor, trade off, market

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capital