Economic Decisions & Systems

Products and money used in the production of goods and services are called natural resources.

• True

• False

The first step in the economic decision-making process is to evaluate the advantages and disadvantages of each choice.

• True

• False

The United States could best be described as a command economy.

• True

• False

The right of private property means you can own, use or dispose of things of value.

• True

• False

In a market economy, buying decisions are made by consumers.

• True

• False

All of the following is a need EXCEPT

• food and shelter

• clothing

• jewelry

• clean air

The mismatch of unlimited wants and needs and limited economic resources is called

• factors of production

• a market economy

• basic economic problem

• a mixed economy

The means through which goods and services are produced are called

• economic resources

• needs

• spending opportunities

• economic choices

All of the following is a capital resource EXCEPT

• a pickup truck

• a factory

• money

• employees

The value of the next-best alternative that you did not choose is called

• trade-off cost

• scarcity

• opportunity cost

• economic cost