Economics-M Quarter 3 Review

The basic economic problem is:

• Profits

• Efficiency

• Scarcity

People are forced to make decisions about how to use resources effectively because:

• Exchange depends on shared needs

• Dividing resources is a requirement of satisfaction

• Resources are limited and wants are unlimited

What is true about the cost of production?

• Has an effect on how much profit a business makes

• Costs of production never change

• The more costs a business has, the more profit it makes

Which of the following is an incentive for people to work?

• Unsafe working conditions

• Low Pay

• Medical Insurance

As a newspaper carrier, the newspaper may offer you a bonus for every 50 new subscribers you sign up. This is an example of a:

• Incentive

• Discouragement

• Negative Consequence

All economies today are actually:

• Mixed

• Command

• Market

Government owns or controls all or nearly all of the factors of production in which of the following economic systems?

• Command

• Traditional

• Market

Individuals have the most freedom to answer the three basic economic questions in which economic system?

• Command

• Traditional

• Market

According to The Law of Demand, as prices rise:

• Demand Increases

• Demand Decreases

• Demand does not change

If the Price of Pepsi increases significantly, many Pepsi drinkers will choose to buy Coke instead. This is an example of:

• Complementary goods

• Income

• Substitution