Economics - Unit 1 Part 1 Vocabulary Quiz

When a resource, good, or service becomes unavailable for a period of time (temporary) due to circumstances affecting the market

• incentive
• innovation
• scarcity
• shortage

Three basic economic questions are answered based on how things have always been done in the past

• market economic system
• command economic system
• mixed economic system
• traditional economic system

Motivates individuals, businesses, and/or governments to undertake an action (positive) or avoid an action (negative)

• shortage
• competition
• innovation
• incentive

Development of new products, processes, organizations, management practices, and strategies - key motivation of entrepreneurs

• innovation
• competition
• incentive
• specialization

Three basic economic questions are answered by a central authority or government

• mixed economic system
• traditional economic system
• command economic system
• market economic system

Person who takes risks such as using one’s own financial resources to make a prototype of a product or buy the capital resources required to start the business

• consumer sovereignty
• private ownership
• entrepreneur
• voluntary exchange

Small or incremental change

• marginal cost
• scarcity
• marginal
• shortage

Determines the goods and services an economy produces because businesses will only produce those products that consumers are willing to buy

• consumer sovereignty
• voluntary exchange
• private ownership
• government regulation

The scarce items used in the production of goods and services in an economy

• profit motive
• natural resources (land)
• productive resources/factors of production
• government regulation

The answers to the three basic economic questions are determined by the interactions of buyers and sellers in the market

• market economic system
• command economic system
• mixed economic system
• traditional economic system