Practice Test - CE.11a and b

the manufactured goods used to make other goods and services (Examples: tools, trucks, machines, and office equipment, among other items)

• profit

• scarcity

• capital

• production

selection of an item or action from a set of possible alternatives

• choice

• resources

• labor

• profit

the inability to satisfy all wants at the same time/limited quantities of resources to meet unlimited wants

• production

• profit

• capital

• scarcity

Individuals and businesses are owners and decision makers for the private sector. • The government is owner and decision maker for the public sector. • The government's role is greater than in a free market economy and less than in a command economy. • Most economies today, including the United States, are this type of economy.

• mixed economy

• traditional economy

• production

• command economy

what is given up when a choice is made (the second best alternative)

• resources production opportunity cost natural resources

• production

• opportunity cost

• natural resources

the using of goods and services

• production

• monopoly

• consumption

• opportunity cost

Private ownership of property/resources • Profit motive • Competition • Consumer sovereignty • Individual choice • Minimal government involvement in the economy

• traditional economy

• free market economy

• command economy

• natural resources

Items provided by nature without human intervention that can be used to produce goods and to provide services

• scarcity

• natural resources

• choice

• opportunity cost

Economic decisions are based on custom and historical precedent. • People often perform the same type of work as their parents and grandparents, regardless of ability or potential.

• command economy

• mixed economy

• traditional economy

• free market economy

the combining of human, natural, capital, and entrepreneurship resources to make goods or provide services

• scarcity

• profit

• production

• consumption