Ce.11-12 Economics Review

Interaction of supply and demand determines --

• profit

• price

• competition

• choice

What leads to the production of higher quality goods at a lower price?

• Scarcity

• Incentives

• Competition

• Production

Consumers determine, through their purchases, the goods and services that are produced. This idea is known as --

• consumer soveriegnty

• entrepreneurship

• profit motive

• production

Who are the decision makers for the private sector in the U.S. economy?

• The government

• Businesses and the government

• Individuals and the government

• Individuals and businesses

What is the inability to satisfy all wants at the same time?

• Choice

• Scarcity

• Opportunity cost

• Incentives

Combining human, natural, capital, and entrepreneurial resources to make goods and services is called --

• consumption

• recources

• production

• distribution

According to the scenario above, in which economy is Tim operating?

• Command economy

• Forced market economy

• Mixed economy

• Traditional economy

According to the scenario above, the yard sale down the road is an example of --

• profit

• competition

• opportunity cost

• an incentive

According to the scenario above, Tim's earnings after all expenses have been paid are his --

• price

• scarcity

• profit

• consumption

Complete the circular flow diagram by filling in the blanks. Households provide _______ and Businesses pay _______

• Labor; services

• Taxes; income

• Labor; income

• Services; taxes