Fundamentals of Economics Vocabulary

An _________ is something that motivates someone.

• resource

• incentive

• decision

• economy

Which of the following is NOT one of the factors of production?

• capital

• land

• incentives

• labor

The level of wealth, comfort, material goods, and necessities available to a certain socioeconomic class or geographic area is known as the....

• standard of living

• rational decision

• sustainability

• specialization

The idea that we have unlimited wants but limited resources is called...

• entrepreneurship

• investments

• economics

• scarcity

The value of the next-best alternative when a decision is made is the...

• capital

• opportunity cost

• incentive

• marginal benefit

A ______ ______ is an economic system where two forces, known as supply and demand, direct the production of goods and services.

• market economy

• traditional economy

• command economy

A non-tangible action or activity that is performed for someone else is a ....

• good

• service

The study of choices is _______.

• economics

• capitalism

The incremental benefit of decision-making is also known as ______ ______.

• market economy

• voluntary exchange

• economic growth

• marginal benefit

A rational decision is a good decision.

• True

• False