Economics Unit 1 Vocabulary Quiz

What is the study of how society manages its resources?

• Entrepreneurship

• Labor

• Economics

• Inflation

Which economic system is characterized by the government owning all resources and determining all economic activities?

• Traditional economy

• Command economy

• Market economy

• Mixed economy

What are the different inputs used to produce goods and services called?

• Natural resources

• Factors of production

• Exchange rates

• Wages

What is the quantity of goods and services produced from each hour of a worker's time called?

• Cost of Living Index

• Sunk cost

• Tax rates

• Productivity

What is the workforce called?

• Labor

• Opportunity cost

• Resource

• Wages

What is the value of one currency compared to another currency called?

• Exchange rates

• Globalization

• Inflation

• Trade policy

An economy that allocates resources through the decisions of many firms and households

• Capital

• Market Economy

• Command Economy

• Todays Money

1. The limited supply of society’s resources

• Scarcity

• Entrepreneurship

• Supply

• Capital

 Something that gets a person to act.

• Incentive

• Trade-off

• Supply

• Demand

1. The item given up in exchange for a choice. 

• Opportunity Cost

• Sunk Cost

• Products

• Supply