Economics 101

Goods are

• objects that satisfy people's needs

• objects that satisfy people's wants

• activities that satisfy people's wants

• activities that satisfy people's needs

Services are

• objects that satisfy people's needs

• objects that satisfy people's wants

• activities that satisfy people's wants

• activities that satisfy people's needs

Anything used to produce an economic good or service is...

• service

• scarcity

• resource

• command economy

The condition of not being able to have all the goods and services you want is...

• scarcity

• resource

• command economy

• market economy

We deal with the problem of scarcity by creating ______ to distribute limited resources among competing wants and needs.

• wars

• more resources

• less resources

• economic systems

An incentive is something that...

• distributes limited resources

• forces people to do something

• hurts economic systems

• encourages or motivates people to do something

Examples of incentives could be

• money

• points systems

• having someone like us

• all of the above

In a market economy, _________ make most of the decisions

• government

• individuals

In a command economy, _______ make most of the decisions

• individuals

• government

In a market economy, there are winners and losers and there is competition among companies to produce the best products at the best prices

• true

• false