Chapter 1 Lesson 3 Studying Economics

What is economics?

• credit and financing

• people and events of the past

• scarcity and use of resources

• Earth and its people

Because of scarcity, people and societies must make choices about how to use resources. They must decide:

• what to produce

• how to produce

• for whom to produce

• all of the above

A(n) _________________ economy is one in which buyers and sellers freely choose to buy or name whatever they want.

Factors of production are_______________.

• types of exchange

• resources needed to produce goods

• related to the concept of scarcity

• all of the above

Since no nation produces all the goods and services it needs, every country engages in________.

• import quotas

• international trade

• tariffs

• trade barriers

What mostly determines the price of an item?

• credit

• interest rates

• investments

• supply and demand

What is borrowing money to purchase goods and services called?

• credit

• a tariff

• income

• a supply

If a heavy freeze kills orange trees across the state of Florida, the ​ (a)   of oranges will ​ (b)   and prices will go ​ (c)   ​ ​

• supply
• decrease
• down.
• demand
• up.
• increase

What is the definition of interest?

• the amount of the original price

• ability of consumer to obtain goods and services

• a fee charged for using someone else's money

• a financial institution that holds money and offers loans

__________ is the amount of money received from selling goods or services.