Studying Economics

Every society must make important economic choices because of _________________.

• Climate change

• international trade rules

• abundant resources

• scarce resources

An opportunity cost is the cost of passing up the second choice when making a decision.

• True

• False

Factors of production are_______________________.

• Types of exchange

• things that geographers study

• related to the concept of scarcity

• the resources needed to make goods and services

Capital refers to human-made goods, such as machines, buildings, and tools, that are used to make other goods and services.

• True

• False

In a market economy, ____________________.

• buyers and sellers freely choose to buy or make whatever they want.

• the government controls production

• only certain people can buy and sell products

• labor is of very little value

The three basic economic systems are traditional, nontraditional, and market.

• True

• False

Private property is ______________________.

• anything owned by the government rather than individuals or groups

• guaranteed by the Bill of Rights

• not important in a market economy

• anything owned by individuals or groups rather than the government

The free enterprise system is another name for the U.S. economy.

• True

• False

An example of a trade barrier is __________.

• an incentive

• a sudden storm

• a trariff

• free trade

Credit involves borrowing money to buy goods and services with the promise to pay back the money in the future.

• True

• False