Economic Decisions and Systems Review

Define 'needs'.

• thing you can't live without

• a luxury item

• something you want

• an optional requirement

Define 'wants'.

• what you would like

• what you need to survive

• what you already have

• what you dislike

Define 'goods'.

• are things that you can see and touch.

• are services provided by businesses.

• are intangible assets.

• are financial instruments.

Define 'services'.

• Services are activities that are consumed at the same time they are produced.

• Services are tangible products that can be stored for later use.

• Services are physical goods that require manufacturing.

• Services are digital products that can be downloaded.

Define 'economic decision-making'.

• the process of choosing which wants, among several options, will be satisfied.

• the process of creating unlimited resources.

• the act of ignoring all wants and needs.

• the method of distributing resources equally among all individuals.

Define 'opportunity cost'.

• the value of the next-best alternative that you did not choose.

• the total cost of all alternatives.

• the monetary cost of the chosen option.

• the time spent on making a decision.

Fill in the blank: A traditional economy is where goods and services are produced the way they have always been.

• A traditional economy is where goods and services are produced the way they have always been.

• A traditional economy is where goods and services are produced using modern technology.

• A traditional economy is where goods and services are produced based on government regulations.

• A traditional economy is where goods and services are produced for international trade.

Fill in the blank: A mixed economy combines elements of the command and market economies.

• A mixed economy combines elements of the command and market economies.

• A mixed economy is solely based on market principles.

• A mixed economy is entirely controlled by the government.

• A mixed economy excludes any form of government intervention.

Fill in the blank: Producers are individuals who make the product.

• Producers

• Consumers

• Distributors

• Retailers

Fill in the blank: Demand is the quantity of a good or service that consumers are willing and able to buy.

• Demand

• Supply

• Production

• Consumption