Economics Fundamentals

People have to make choices because ​ (a)  

• resources are limited.
• resources are abundant.
• resources are varied.
• they simply have to.

Select the four types of resources.

• Natural

• Human

• Capital

• Entrepreneurship

• Fundamental

That which is given up when a choice is made is called ​ (a)   .

• opportunity cost
• scarcity
• fundamental cost
• supply & demand

The amount of money exchanged for a good or service.

• Cost
• Expense
• Value
• Price

What are incentives?

• Rewards or benefits offered to encourage certain behaviors or actions.
• Everyday tasks
• Random acts of kindness
• Punishments for undesirable behaviors

Which is an example of an economic incentive?

• Receiving a gift from a friend
• Getting a promotion for good performance
• Winning a lottery ticket
• Buy one, get one free

Snow cones during December

• high demand
• low demand

____ is when there are limited resources or resources are in short supply.

• Abundance
• Plenty
• Excess
• Scarcity

fireworks during July

• high demand
• low demand

heavy jackets in the middle of summer

• high demand
• low demand