Economics Introduction

Scarcity is a problem:

• that only poor people face.

• because human wants are limited while resources are unlimited.

• because human wants are unlimited while resources are limited.

• only in third world countries.

In this type of economy, the people decide the supply, demand, and price.  

• Market 

• Traditional

• Command 

• Mixed

Which of these would most likely take place in a command economy?

• private ownership of property

• competition between businesses

• Government leaders decide how goods will be produced

• Consumers decide the sales policies of business owners

The tools, equipment, and buildings that are used to produce goods and services

• Human resources

• Capital resources

• Intermediate resources

• Primary resources

Items purchased to satisfy needs and wants

• Services

• Goods

• Needs

• Shrek

The factors of production include:

Check all that are true.

• capital resources

• natural resources

• human resources

• factory resources

The branch of Economics that talks about the behavior of consumers, producers and the market.

• Micros

• Macros

• Microeconomics

• Macroeconomics

What is the primary focus of microeconomics?

• The study of national economies

• The study of individual markets and consumers

• The study of global trade

• The study of government policies

Which of the following is considered a factor of production?

• Money

• Labor

• Technology

• Time

In a mixed economy, who makes the economic decisions?

• Only the government

• Only private individuals

• Both the government and private individuals

• Neither the government nor private individuals