Economics Part 1 Review

the factors of production used in making goods and services

• goods

• resources

• incentives

• opportunity cost

the inability to satisfy all wants at the same time

• choice

• production

• opportunity cost

• scarcity

Selection of an item from a set of possible alternatives

• opportunity cost

• decision

• choice

• consumption

When Samuel decides to start his own company instead of getting a job as a police officer, what is his opportunity cost?

• the job working for law enforcement

• the paycheck

• getting a high school diploma

• going to college

Combining the wood, tools, design and construction workers to build a house is known as ...

• scarcity

• consumption

• production

• choice

Using goods and services is known as ...

• consumption

• reduction

• ordinance

• entrepreneur

Jack's Lawn Care Service is available for anyone looking to have someone else mow their lawn. What do you call Jack?

• consumer

• legislator

• sheriff

• entrepreneur

Something that motivates a consumer to change their economic behavior is called..

(Example = coupon)

• scarcity

• incentive

• decision making model

• production

The amount of money exchanged for a good or service?

(The video game is $59.99)

• revenue

• opportunity cost

• choice

• price

Producers will produce more of an item when they can sell it a a higher price and will produce less when they can sell at a lower price. This is called ...

• Law of Supply

• Law of Demand

• equilibrium price