Economics Basics

What is consumption?

• The using of goods and services

• That which is given up when a choice is made

• Making of goods and services

• That which determines price

Trees are an example of what type of resource?

• Capital

• Entrepreneurship

• Natural

• Human

A bulldozer is an example of what type of resource?

• Natural

• Entrepreneurship

• Human

• Capital

The workers in a factory are considered what type of resource?

• Natural

• Human

• Capital

• Entrepreneurship

Scarcity refers to --

• the factors of production.

• the inability to satisfy all wants at the same time.

• things used to change economic behavior.

• what is given up when a choice is made.

What is the amount of goods or services consumers are willing to buy at a certain price?

• Incentive

• Supply

• Demand

• Consumption

What is supply?

• Amount of the incentive

• Amount an item costs

• Amount of goods or services people are willing to buy

• Amount producers are willing to sell

If supply is low and demand is high, the price of an item will --

• stay the same.

• be low.

• be high.

• none of the above.

What does the interaction between supply and demand decide?

• Price of goods and services

• Consumer preferences

• Mixed economies

• Free markets

What type of economic system does the United States have?

• Command

• Free market

• Mixed

• Traditional