Economy Review

The government dictates what and how many goods and services are produced, prices and individual incomes, and who can purchase those goods and services and how much they can buy.

• Command

• Free Market

• Mixed

• Traditional

What are goods?

• Actions or activities that one person performs for another

• a general increase in prices and fall in the purchasing value of money.

• A situation in which unlimited wants exceed the limited resources available to fulfill those wants

• Physical items purchased to satisfy needs and wants

What are services?

• the struggle among producers for the dollars of consumers

• a general increase in prices and fall in the purchasing value of money.

• Actions or activities that one person performs for another

• Items purchased to satisfy needs and wants

What is inflation?

• The fall in assests and consumer prices over time

• The increase in taxes over time

• the increase in prices and the fall of the purchasing power of money.

What is supply and demand?

• The amount of raw materials available found in nature.

• The amount of labor resources required to produce a product or service.

• The amount of a good or service available and the desire for consumers to buy it.

• None of the above

What is scarcity?

• Limited or short supply of a good or service.

• Unlimited supply of a good or service.

• Limited supply of a good but unlimited supply of a service.

What is economic competition?

• The rivalry among businesses to sell goods to consumers and make the greatest profits.

• total revenue minus total cost

• A person who purchases goods and services for personal use

Businesses and Consumers are in control, government plays no role.

• Command

• Free Market

• Mixed

• Traditional

True or False: Economics is the study of how people seek to satisfy their needs and wants by making choices.

• True

• False

This type of economy does not use money and relies on the barter system. Tradition is very important in this type of economy

• Command

• Free Market

• Mixed

• Traditional