CE.12a The U.S. Economy

Frank chooses wants a new surfboard and mountain bike, but he cannot afford both. He gets the board but not the mountain bike. What is the mountain bike?

• scarcity

• opportunity cost

• choice

• consumption

The fact that all resources suffer from ______, this means we must make choices about what to produce and what to buy.

• scarcity

• abundance

• plenty

• excess

This is the amount of goods or services that PRODUCERS are willing to produce at a certain price. Fill in the blank: ________.

• Supply.

• Demand.

• Consumption.

• Distribution.

This is the amount of goods or services that CONSUMERS are willing to buy at a certain price. Fill in the blank: _______

• demand

• supply

• production

• inventory

What are the three economic questions that all economies must produce?

• What to produce, who will produce it, and for whom to produce

• Supply, demand, and equilibrium

• Inflation, unemployment, and growth

• Capital, labor, and resources

The idea that what the consumer wants will be supplied by producers and that consumer demand drives market and mixed market economies is ..........

• Consumer sovereignty

• Producer dominance

• Market equilibrium

• Government control

What type of economy am I? United States and most economies of the world?

• command

• free market

• mixed

• traditional

Match the following types of economies with their characteristics.

• Economic decisions are made by a combination of market forces and government intervention.

• Market Economy

• Economic decisions are made by individuals and businesses.

• Command Economy

• Economic decisions are based on customs and traditions.

• Mixed Economy

• Economic decisions are made by a central authority.

• Traditional Economy

What type of economy am I? TOTAL government control of all economic decisions.

• Traditional

• Free Market

• Mixed Economy

• Command Economy

Which economic system relies on customs and traditions to make economic decisions?

• Traditional

• Free Market

• Mixed Economy

• Command Economy