Final Exam Concepts & Vocabulary

What is the definition of 'Wants and Needs'?

• Wants are things people desire to have, while needs are things people must have to survive.

• Wants are things people must have to survive, while needs are things people desire to have.

• Wants and needs are both things people can live without.

• Wants are things people need for survival, while needs are things people want for fun.

What are 'Resources' in economics?

• Resources are inputs used to produce goods and services, such as land, labor, and capital.

• Resources are only the money available to a business.

• Resources refer exclusively to finished products ready for sale.

• Resources are the profits earned by companies.

What is a 'Product' in economics?

• A product is a good or service that is offered to satisfy a want or need.

• A product is only a physical item that cannot be consumed.

• A product is a type of currency used in trade.

• A product is a government regulation.

What is a 'Service' in economics?

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Who is a 'Consumer'?

• A consumer is a person who purchases goods and services for personal use.

• A consumer is a person who sells goods and services to others.

• A consumer is a person who manufactures goods for commercial purposes.

• A consumer is a person who provides services to businesses.

A 'Command Economy' is a type of economic system where:

• the government makes all decisions regarding the production and distribution of goods and services.

• individuals and businesses make decisions based on supply and demand.

• there is a mix of government and private sector involvement in economic decisions.

• the economy is driven by technological advancements and innovation.

What is a 'Market Economy'?

• An economic system where the government controls all prices and production.
• A system where trade is conducted solely through barter without any currency.
• An economy that relies exclusively on agriculture and subsistence farming.
• A market economy is an economic system driven by supply and demand, where prices are determined in a free market.

What is a 'Mixed Economy'?

• A mixed economy is an economic system combining private and public enterprise.

• A mixed economy is an economic system based only on government ownership.

• A mixed economy is an economic system where only private businesses operate.

• A mixed economy is an economic system that does not allow any form of trade.

What is a 'Business Plan'?

• A business plan is a formal written document containing business goals, the methods on how these goals can be attained, and the time frame within which these goals can be achieved.

• A business plan is a casual conversation between business partners about future ideas.

• A business plan is a government-issued license to start a business.

• A business plan is a list of products a company wants to sell next year.

The difference between unlimited wants and limited resources is known as:

• Abundance

• Scarcity

• Surplus

• Equilibrium