How do we decide what to produce?

When goods or services are hard to get or find, we say they are......

• easy.

• scarce.

• empty.

• plentiful.

When goods, services or resources are scarce, decisions have to be made about who will have them first. We call this process.......

• allocation.

• consumers.

• producers.

• economics.

Economic resources are the goods or services available to people and businesses that are used to makes products we need and want.

• True

• False

The price of a product rises. What will happen to the demand for its complement?

• It will contract

• It will extend

• It will decrease

• It will increase

In what type of economy allocation do government officials determine how to produce goods/services?

• Government

• Command

• Market

• Traditional

In what type of economy allocation do individuals and firms determine what will be produced?

• Government

• Command

• Market

• Traditional

Which group do incentives influence to change their behavior?

• Buyers

• Sellers

• Both buyers and sellers

• None of these answers.

When price increases, demand....

• increases

• decreases

Which condition would lead to the highest prices?

• Low supply, high demand

• High supply, high demand

• High supply, low demand

• Low supply, low demand

In a market, price is determine by the interaction of:

• inputs and outputs

• supply and demand

• push and pull factors

• demand and means on distribution