Economics

A hair dresser is an example of what?

• Service

• Good

Shortages occur with products when what?

• The demand is higher than the supply.

• The supply is higher than the demand.

Is this fine a positive or negative incentive?

• Positive

• Negative

A negative incentive is...

• makes someone want to do something.

• makes people not want to do something.

A positive incentive is...

• makes people want to do something.

• makes people not want to do something.

A sale on an item is an example of...

• positive incentive

• negative incentive

What is opportunity cost?

• your choice
• what you give up to make a choice

A popular bakery has only a few ingredients left to make their products.  They could bake muffins or cookies, but they can’t make both.  The bakers decide to make cookies for their customers.  What is the opportunity cost of their decision?

• muffins 
• cookies 

If the store has 100 packs of toilet paper and 200 people want to buy it, is it a shortage or surplus?

• shortage

• surplus

Define Surplus

• more items available for sale than people want to purchase

• more people want an item than is available for purchase