3-5 Elementary Economic Terms

Who is a person who takes a risk to start a business?

• Consumer
• Entrepreneur 
• Labor
• Capital

People focused on producing a few things instead of making everything they want by themselves is called...

• Economic Resources

• Scarcity

• Specialization

The TOOLS and MATERIALS needed to make goods and to provide services are called______________.

• natural resources

• capital goods

• human capital

• services

_______________ goods or services are provided by governments in a market economy and are paid for through taxes.

• Private

• Market

• Public

What is currency?

• money, usually made from some type of paper-like material

• newspapers, usually made with paper

• movement of air or water in a definite direction

• the value of the next-best alternative when a choice is made

Trying to satisfy unlimited wants with limited resources defines _____ and is the fundamental problem of economics.

• scarcity
• needs
• wants
• microeconomics

The combining of human, natural, capital, and entrepreneurship resources to make goods or provide services

• consumption

• production

• distribution

• resources

Economics seeks the answer to the basic question of how to deal with ______.

• money

• hunger

• demand

• scarcity

Payment of cash or cash equivalent in exchange for a good or service

• expenditure

• savings

• Economics

• income

When a company reduces the price of a good or service to encourage consumers to buy

• surplus

• price reduction

• price incentive

• supply