Economic Choices

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

• good

• service

The study of choices is _______.

• economics

• capitalism

_______ are required to produce goods and services.

• alternatives

• investments

• resources

• incentives

A physical, touchable product is called a ____.

• good

• service

What causes scarcity?

• specialization and division of labor

• trade-offs and opportunity costs

• limited resources and unlimited wants

• innovation and entrepreneurship

What is an incentive?

• encourages specific behavior and helps to motivate an individual to take specific action

• a bribe to make you afraid

• an offer to make a deal that causes worry if you do not act a specific way

• none of these

An example of how a Business Incentive MOTIVATE Consumers to buy their product is

• offer "children eat free" with paid adult at a restaurant

• threatening a customer with no more merchandise

• place fear into customer to buy or get a price increase

• None of these

The government will incentivize citizens (employees) to save for retirement by

• threatening employees to pay more taxes if they do not save all of their pay check

• creating commercials with tax payer money

• None of these

• allowing employees to create a 401K (retirement savings) account that reduces their taxes