CHMS CE11a-b Econ Terms and Types of Economies-3/11

The inability to satisfy all wants at the same time. This requires that choices be made.

• choice

• price

• scarcity

• production

Select EACH type of resource.

• natural

• capital

• human

• entrepreneurship

While shopping you select a pair of shoes and leave behind a jacket that you also wanted. The jacket becomes your_______.

• choice

• opportunity cost

• service

• supply

Things that incite or motivate. These are used to change economic behavior.

• choice

• consumption

• incentives

• scarcity

Select EACH example of a good.

• car

• car dealer

• tires

• gasoline

Economic decisions based on custom and historical precedent.

• traditional

• free market

• command

• mixed

Central ownership usually by the government of property/resources.

• traditional

• free market

• command

• mixed

Private ownership of property/resources; Minimal government involvement

• traditional

• free market

• command

• mixed

Most economies today(including the U.S are this type)

• traditional

• free market

• command

• mixed

Select EACH characteristic of a Free Market economy.

• profit motive

• competition

• lack of consumer choice

• minimal government involvement