Unit:1-Part 1-Summative-Scarc/OppCost/CircFlow

A person who buys or uses goods and services is a:

• consumer

• producer

A person, company, or country that makes or grows goods, food, or materials is a:

• consumer

• producer

The study of the economy as a whole is called:

• microeconomics

• macroeconomics

Natural resources that are unaltered gifts of nature, such as soil, minerals, timber, and fresh water, are known as:

• capital

• labor

• land

The buildings, tools, and machines that people create and use to produce final goods and services are known as:

• capital

• labor

• land

The physical and mental effort people use to create goods and services is known as:

• capital

• labor

• land

_____________ is the inability to satisfy all wants with the resources available.

• scarcity

• rarity

• shortage

• surplus

______________ is the imagination, innovative thinking, and management skill needed to start and operate a business.

• Labor

• Opportunity cost

• Entrepreneurship

• Capital

The study of individual consumers and businesses is known as:

• microeconomics

• macroeconomics

An economy that relies on voluntary trade as the primary means of organizing and coordinating production is known as a __________ economy.

• Mixed

• Command

• Market