Economics Ch. 1

Economics is the study of how people make choices about ways to use _______________ resources to fulfill their unlimited wants and needs.

• Limited

• Unlimited

• Natural

• Man-made

The central problem in economics is:

• Government

• Busineseses

• Scarcity

• Opportunity Cost

An economic system that decides what to produce, how to produce, and for whom to produce according to long-standing customs is?

• mixed

• free-market

• traditional

• command

Goods or services that are not necessary, but that we desire or wish for. Examples: video games, toys, concert tickets, etc.

• Demand
• Needs
• Wants
• Presents

The reason why you can't have everything you want is because of ___________________.

• Opportunity Cost
• Scarcity
• Incentive 
• Choice

The study of how people seek ways to meet their wants and needs by making choices is called?

• Economics
• Scarcity
• Capitalism
• Entrepreneurs

What is the best example of scarcity

• The restuarant is not crowded tonight 
• The school parking lot only has 150 spaces but 200 students want to park there
• There are 500 houses in the subdivision and 250 of them are occupied
• A person decided to dye her hair blonde instead of red

If you were invited by friends to go to the movies but you instead to stayed in and watched Netflix what is the opportunity cost of your choice?

• Watching Netflix

• Going to the movies with your friends

• Taking a nap

• Ordering takeout

What countries have a Command Economy?

• Iceland, Sweden, France, Australia

• United States, Russia, Africa, Haiti

• India, United Kingdom, Brazil

• North Korea, Cuba, Soviet Union, China, Vietnam

Traditional Economy

• economic decisions are made by tradition and customs

• economic decisions are made by supply and demand

• economic decisions are made by the government