Fundamentals of Economics Vocabulary Test - SPRING

________ is the idea that we have unlimited wants but limited resources.

• entrepreneurship

• economics

• investments

• scarcity

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

• capital

• incentive

• opportunity cost

• marginal benefit

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

• marginal benefit

• economic growth

• voluntary exchange

• market economy

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

• sustainability

• marginal benefit

• marginal cost

• scarcity

An _________ is something that motivates someone.

• decision

• economy

• incentive

• resource

_________ is when a company or individual decides to focus their labor on a specific type of production.

• investments

• scarcity

• sustainability

• specialization

A ______ _______a type of transaction where two parties freely trade goods or services.

• involuntary exchange

• voluntary exchange

• command economy

• mixed economy

An iPhone is an example of a want or need?

• want

• need

Food is an example of a want or need?

• need

• want

Which of the following is NOT a factor of production?

• productivity

• capital

• labor

• entrepreneur