Economics Basics Lesson 1 Review

The value of something given up in a choice or tradeoff is called the _.

• factors of production

• opportunity cost

Unlimited human wants create _ in the world because of limited resources.

• profit

• scarcity

A nation's _ is its system of producing, selling, and buying goods and services.

• economy

• scarcity

The money an individual or business has left after paying expenses is called _.

• capital

• profit

Nations that rely on trade with one another for supplies of scarce resources experience _.

• economic interdependence

• scarcity

When a factor of production is increased, the result can be a (n) _ of the business.

• contraction

• expansion

A(n) _ is a system of producing, selling, and buying goods and services.

• economy

• expansion

_ are actions.

_ are goods.

_ is a major incentive for individuals and businesses.

• Profit

• Money