Economic Systems

Every society has to answer these 3 economic questions...

• Who's on first? What's on second? Why is he on third?

• Should we farm more, fund healthcare, or build a park?

• What to produce? How to produce? For whom to produce?

• What do I buy? How much do I save? How much do I give?

What is true about scarcity in economics? Check all that apply.

• It is the gap between limited resources and limitless wants.

• Scarcity is the result of people having "Unlimited Wants and Needs."

• Scarcity is the next best option.

• Scarcity is always wanting something new, and having "Limited Resources."

The definition of Economics is the

• Study of plants and animals in the economy

• Study of how currency is printed.

• Study of how resources are used to satisfy unlimited wants and needs

• Study of socialism, capitalism, imports and exports.

Opportunity cost is

• the next best option

• the invisible hand

• the circular flow of income

• the cost of producing an item

An incentive is... check all that apply

• something that makes someone want to do something or work harder.

• An increase in production

• extra money offered to those employees who work extra hours on a project.

• tasks performed by people, not machines