Understanding Basic Economic Concepts

Front

What is an opportunity cost?

Back

The benefits you miss out on by choosing one option over another

Front

What is the economy?

Back

A system of producing, selling, and buying goods and services

Front

How do producers decide what they are going to make?

Back

By looking at what consumers want and need

Front

What two things make up market forces?

Back

Supply and demand

Front

Which type of economy depends on bartering?

Back

Traditional economy

Front

Which type of economy depends on farming and hunting to supply needs?

Back

Traditional economy

Front

What type of economy does the government have little control over?

Back

Market economy

Front

Which type of economy does not have competition between businesses? Options: Market economy, Command economy, Traditional economy, Mixed economy

Back

Command economy

Front

North Korea is an example of which type of economy?

Back

Command economy

Front

What is the difference between a savings account and a checking account?

Back

Checking accounts are for everyday spending, while savings accounts are for saving money over time.