Economics- Final- Spring 2021

Things you can touch or hold in your hands are called____.

• Goods

• Services

• Wants

Scarcity is caused by the fact that the world has limited_____.

• Needs

• Wants

• Resources

Taking things from earth, making things, and providing services are the ________.

• Factors of production

• Basic economic activities

• Basic questions of economics

The rules a country follows in answering the basic questions of economics are its______.

• Economic system

• Market system

• Factors of production

An economy in which people and the government each have some say in how the three basic questions are answered is a __________.

• Command economy

• Market economy

• Mixed economy

Adam Smith said that market economies are controlled by _____,

• The government

• Tradition

• An "invisible hand"

Producers work hard to get people's business because of ___________.

• Competition

• Freedom of exchange

• Profit

An economic system which allows the people to make most decisions about the three basic economic questions is called________.

• Free enterprise

• Socialism

• Communism

The law of supply and demand says that as the price of a good or service falls, sellers will offer less, and buyers will demand ____.

• More

• Less

• The same amount

If you are a producer, you sell your goods in the _____.

• Product market

• Resource market

• Flow of the economy