Fundamentals of Economics 3

Scarcity

• a basic condition that exists when unlimited wants exceed limited productive resources.

• a basic condition that exists when limited wants exceed unlimited productive resources.

• a basic condition that exists when unlimited productive resources exceed limited wants.

• a complex condition that exists when unlimited wants exceed limited productive resources.

Entrepreneurship is

• when a person starts or purchases a business and assumes majority of the risk and profits.

• When a person purchases a small portion of a business and assumes very little risk and few profits.

• When a person manages a business and earns a yearly salary.

• When a person stars or purchases a business but assumes no risk or profits.

Opportunity Cost is...

• the value of the next best alternative that was given up

• the value of what you would get if you chose one more

• the value of all of the choices you never made

• the value of what you did choose

A Trade off is

• sacrificing one thing for another

• exchanging one thing for another

• trading with other people

• Go Dawgs!

What is a characteristics of a market economy?

• lack of choice
• individual choice
• competition
• central ownership of property

Which type of economy has central ownership and lack of individual choice?

• Market Economy
• Mixed Economy
• Command Economy
• Traditional Economy

Which type of economy is controlled by the government?

• Command
• Market
• Mixed
• Democratic

Which type of economy is run by the businesses & business owners?

• Command
• Mixed
• Communist
• Market

Which type of economy is based on traditions and beliefs?

• Command
• Market
• Traditional
• Mixed

Which type of economy involves trading, and doesn't usually use money?

• Command
• Traditional
• Market
• Mixed