12.12 Economics Review

What is the economy?

• The study of ancient civilizations

• The way goods and services are produced and consumed

• The process of weather patterns

• The art of painting

What motivates producers to produce and sell goods or services?

• Profit

• Charity

• Fame

• Hobby

What is the role of consumers in the economy?

• Regulating the market

• Investing in stocks

• Producing goods and services

• Acquiring goods and services for personal use

What type of economy does the United States have?

• Market economy

• Command economy

• Mixed economy

• Traditional economy

What is the process of developing newer, better things called?

• Stagnation

• Conservation

• Imitation

• Innovation

What are the main factors that determine the cycle of ups and downs in a market economy?

• Global trade agreements

• Consumer preferences

• Government regulations

• Supply and demand

What is the benefit given up by choosing to do one thing instead of another called?

• Opportunity cost

• Sunk cost

• Marginal cost

• Fixed cost

What happens when there is high demand but low supply in a market economy?

• The market becomes stagnant

• The price goes down

• The government intervenes

• The price goes up

What is the opposite of a market economy?

• Command economy

• Mixed economy

• Traditional economy

• Barter economy

In a command economy, who makes the decisions about what gets produced and consumed?

• International organizations

• Private corporations

• Producers and consumers

• The government