Basic Economic Concepts, Economic Systems, and US Economy

What is given up when a choice is made is

• Resources

• Choice

• Opportunity Cost

• Demand

The amount of goods and services producers are willing and able to sell at a certain price

• Supply

• Demand

• Incentive

• Scarcity

The amount of goods and services consumers are willing and able to buy at a certain price

• Production

• Free Market Economy

• Demand

• Supply

Using a good or service

• Consumption

• Production

• Opportunity Cost

• Consumer Sovereignty

Examples of _______ resources are trees, coal, oil, wind, water, etc.

The inability to satisfy all wants at the same time. When something is very rare.

What type of economy does the U.S. and most countries today have?

• Free Market

• Mixed

• Command

• Traditional

This type of economy is based on custom and historical precedent. People do the same work as their parents and grandparents.

This type of economy has very little or no involvement from the government.

• Command

• Free Market

• Mixed

Countries such as North Korea and the former Soviet Union have a centrally planned economy controlled by the government. What type of economy is this?