Final Exam Review-- Part 1

Limited resources to satisfy unlimited wants.

• scarcity

• surplus

• shortage

Products that satisfy a person's economic needs.

• capital goods

• wants

• consumer goods

This part of government is responsible for collecting taxes.

• FBI

• IRS

• tax assessor

Which is an economic need?

• food

• clothing

• shelter

• car

Decisions are made based on tradition and custom in this type of economy.

• Market

• Command

• Traditional

Decisions in a command economy are based on

• consumers and producers

• government/central authority

• tradition and custom

One benefit of a command economy is

• the ability to react quickly to war, famine, and disaster.

• it is stable and predictable.

• high consumer satisfaction.

What are the 3 basic economic questions?

• What to produce?

• How to produce?

• For whom to produce?

• When to produce?

The 4 factors of production are

• land

• capital

• service

• entrepreneurship

• labor

What type of tax is an 8% sales tax?

• progressive

• regressive

• proportional