Economic Intro Review

What is economics, and why is it important for you to learn about?

Which term refers to the fact that resources are limited?

• Investment

• Scarcity

• Profit

• Capital

Which of the following are required for production?

• Natural resources

• Capital

• Labor

• Entrepreneurs

• Experience

Explain the difference between a GOOD and a SERVICE.

Which economic system divides the resources based on ritual, habit, or custom?

• Traditional

• Command

• Market

• Capitalist

One of the problems with a traditional economy is _______.

• people don't know what to do

• there are few new ideas

• you have to live in rural areas

• people are able to make a lot of money

One of the problems with a market economy is _______.

• lack of freedom to buy and sell

• there are few new ideas

• there's little help for those struggling

• people are able to make a lot of money

What is economics?

• The study of money and getting rich.

• A science that deals only with the stock market.

• The study of people and choices.

• People predicting what will happen in a market.

Which of the following statements best describes scarcity?

• People have unlimited wants but limited resources

• Inexpensive production means more profit

• People have limited wants but unlimited resources

• There is a cost to every decision

What is one advantage of a free market (capitalism)? Explain your answer.