Economics Intro Notes Review

What is the key factor in determining the type of economy a country has?

• The extent of government involvement

• The level of technology

• The size of the population

• The amount of natural resources

In a command economy, who owns the property and resources?

• Private individuals

• Foreign investors

• The government

• Non-profit organizations

What is opportunity cost?

• What is given up when a choice is made

• The inability to satisfy all wants

• The factors of production that are used

• The amount of money exchanged for something

Which type of economy is characterized by private ownership and consumer sovereignty?

• Traditional economy

• Command economy

• Free market economy

• Mixed economy

What motivates people to make economic decisions?

• Production

• Resources

• Incentives

• Scarcity

When a government decides to spend more on public healthcare services, which concept BEST describes what they sacrifice by NOT spending those funds on education?

• Price elasticity

• Opportunity cost

• Economic equilibrium

• Supply and demand fluctuation

What would be the best phrase to complete the graphic?

• Government intervention in the economy

• Effect of consumer sovereignty

• Rivalry between producers and consumers

• Interaction of supply and demand

A local shoe store had this sign in the window. This is an example of...

• Price

• Opportunity cost

• Incentive

• Supply and demand

The lack of enough resources to produce everything people want is which central economic problem?

• Allocation

• Production possibilities

• Productivity

• Scarcity

What type of economy does the US currently have?

• Command economy
• Traditional economy

• Mixed economy
• Free market economy