Economics 1

When people want or need more of something than there is.

• Scarcity
• Profit
• Opportunity Cost
• Tax

When there are a surplus of items, the product is easy to get. What happens to the price of these products?

• Price Increases
• Price Decreases

The government has little to no role in the production of goods in this type of economy. 

• Traditional 
• Mixed
• Command 
• Market

If my government is selling me bread for $5 a loaf, and I have no choice but to buy that type of bread, I live in a _____ economy. 

• Traditional 
• Market 
• Command 
• Mixed

In this type of economy, the government places control on businesses, but the individual decides what to make. 

• Mixed
• Market
• Command 
• Traditional

An ______  is someone who takes a risk to start a business (usually small business). Why do they take risk? Enjoy taking risk. ·Want to work for themselves. Ex. Bill Gates who started Microsoft.

• Loan Officer
• Investor
• Entrepreneur

Scarcity arises because all societies have

• limited productive resources to satisfy unlimited wants
• unlimited productive resources to satisfy limited wants
• limited needs and unlimited wants
• unlimited needs and limited wants

What does this curve represent?

• demand
• supply
• equilibrium
• shortage

For the law of supply, as price rises, what happens to quantity supplied?

• it goes up
• it goes down
• it stays the same
• it is not effected

For the law of demand, as price rises, what happens to quantity demanded?

• it goes up
• it goes down
• it stays the same
• it is not effected