YCSD Unit 7 Review - Economic Concepts & Founding Principles

A market exists whenever buyers and sellers —

• calculate earnings after expenses

• make investments in new innovation

• exchange goods and services

• use incentives to attract new customers

Which phrase best completes the title of this diagram?

• Industrial Productivity

• Business Profit

• Government Regulation

• Consumer Choice

Daniel only has $20. He wants to buy a ticket to the school dance but he also wants to go to the movies. What is the opportunity cost if Daniel chooses to buy the dance ticket?

• A. The opportunity cost is he spends all of his money.

• B. The opportunity cost is that he won't be able to go to the movies.

• C. The opportunity cost is he gets to go to the dance.

• D. There is no opportunity cost because he didn't give up anything.

Consumption is most often known as —

• the inability to satisfy all wants and needs

• the use of goods and services

• factors of production

• the desire for goods and services

Which of the following is true about scarcity? (Select 3)

• Scarcity is the selection of an item from many possible alternatives

• Scarcity forces consumers to make difficult choices.

• Scarcity means there are limited resources available.

• Scarcity is the inability to satisfy all wants and needs.

Which title best replaces the question mark?

• Questions that Determine the Purpose of Government

• Questions that Define Role of Government in a Free Market Economy

• Questions that Define a Traditional Economy

• Questions that Determine the Type of Economy a Country Has

Which of the following best describes a command economy?

• Private ownership of property

• Central ownership of property

• Free market control of goods and services

• Consumer sovereignty

Which characteristic of the U.S. economy is best described here?

• The right to earn a profit.

• The benefits of consumer sovereignty.

• The freedom to produce or sell goods.

• The right to private ownership of property.

What is the best title for the diagram?

• Traditional economy

• Free Market economy

• Command economy

• Mixed economy

In a free market economy, who primarily determines what goods and services are produced?

• The government

• Private businesses only

• Consumers by purchasing choices

• Central planning committees