Unit 7 Economics

What definition best defines consumption?

• Factors of production of goods and services

• Using of goods and services

• Selection of best alternatives

• Combine human, natural, and capital resources with entrepreneuership

Which economic concept best fits with the pictures?

• opportunity cost

• production

• scarcity

• consumption

What makes you want to buy one product over another?

• entrepreneur (creating stuff)

• producer (making stuff)

• incentives (getting 25% off stuff)

• Capital (having tools to make stuff)

Mike has $10. He can buy a new video game or buy a shirt. He decides to buy the game and not the shirt. Not buying the shirt is his

• incentive

• opportunity cost

• supply

• demand

Scarcity refers to

• not being able to satisfy all your wants at the same time

• the factors of production

• what is given up when a choice is made

• things used to change economic behavior

What are the characteristics of a traditional economy?

• Family owned, farming, barter, trade

• government controlled

• small business, freedom to buy, sell, and create

• Minimal government involvement

Jodi loves to exercise and wants to open her own gym as a business. The government makes Jodi have a few regulations in order to protect her clients. Jodi lives in which type of economic system?

• Market/ Free Enterprise system

• Traditional System

• Command System

• Mixed

What is the term for all my earnings after the bills are paid?

• profit

• competition

• services

• production

You have the choice to buy Extra, Trident, Cubes, or Bubble gum. This is called

• earnings

• supply

• consumer sovereignty

• services

You want to eat fast food for lunch. You can choose McDonalds, TacoBell, or Burger King. They all want your business. This is called:

• production

• competition

• consumption

• profit