Lily Economics 2020

The economic system that the United States uses is called a __________.

• market economy

• income

• circular flow

• taxes

A market economy is based on the interactions of __________.

• buyers and sellers

• imports

• exports

• safety, security, common good

__________ describes the pattern in which goods and services and resources go around the marketplace.

• circular flow

• substitute goods

• incentives

• competition

Individuals use their __________ to buy goods and services from businesses.

• income

• incentives

• increases

• imports

When prices decrease, demand for a good or service __________.

• increases

• decreases

• rewards

• employed

When prices increase, demand for a good or service __________ and consumers may choose to substitute goods or services.

• decreases

• increases

• substitute good

• income

A __________ is a good that can be used in place of another good.

• substitute good

• reward

• penalty

• unemployed

__________ can lead to a decrease in prices.

• competition

• circular flow

• market economy

• income

__________ are rewards or penalties used to encourage people to behave in certain ways.

• incentives

• buyers and sellers

• safety, security, common good

• taxes

Rewards are __________ incentives that make people better off.

• positive

• negative

• import

• export