CH 9 Economics Review

Interaction of supply and demand determines—

• profit

• price

• competition

• choice

What leads to the production of higher quality goods at a lower price?

• Scarcity

• Incentives

• Competition

• Production

Consumers determine, through their purchases, the goods and services that are produced. This idea is known as—

• consumer sovereignty

• entrepreneurship

• profit motive

• production

Who are the decision makers for the private sector in the U.S. economy?

• The government

• Businesses and the government

• Individuals and the government

• Individuals and businesses

What is the inability to satisfy all wants at the same time?

• Choice

• Scarcity

• Opportunity cost

• Incentives

Combining human, natural, capital, and entrepreneurial resources to make goods and services is called—

• A. consumption

• B. resources

• C. production

• D. distribution

According to the scenario above, in which economy is Anthony operating?

• A. Command economy

• B. Forced market economy

• C. Mixed economy

• D. Traditional economy

According to the scenario above, the yard sale down the road is an example of—

• A. profit

• B. competition

• C. opportunity cost

• D. an incentive

According to the scenario above, Anthony’s earnings after all expenses have been paid are his—

• A. price

• B. scarcity

• C. profit

• D. consumption

What is determined by consumer preference and price?

• Production

• Consumption

• Innovation

• Distribution