Econ unit 1 Review Stulpe

Why are Opportunity Costs important?

• Opportunity costs are the main cost for most companies

• People should know the costs of other each alternative before making a decision

• People do not know what they are giving up when they rule on option out

• The effects to society are so large that it can cause poverty

The need for people to make trade-offs is becuae of

• Abundance

• Free Enterprise

• Labor Costs

• Scarcity

Wants are:

• Unlimited

• Limited

Who makes the decisions about the 3 economic questions in a command economy?

• Traditional customs

• Business owners

• Consumers

• The government

"The price and quantity of traded goods are determined by the interaction of supply and demand" best describes what kind of market?

• Market economy

• Command economy

• Socialism

Historical Customs are drive economic decisions of what kind of market?

• Free Market
• Traditional Market
• Command Market
• Mixed Market

What is included in the "land" part of the factors of production?

• Natural resources
• Employees

• A machine

• An office building

Land, Labor, Capital and Entrepreneurship are known as

The rest that could have been had instead of staying up really late on a school night is known as

• Opportunity Cost
• Marginal Cost
• Variable Cost
• Fixed Cost

Communist countries fall under what kind of economic structure?

• Capitalist Economy
• Mixed Economy
• Market Economy
• Command Economy