Economic Systems Review

What causes scarcity?

• limited wants/needs and limited resources

• high demand/ / cost decrease

• Unlimited wants/needs and limited resources

• little demand / cost increase

Are land, labour, and capital unlimited resources?

• Yes

• No

• Some are

Which resource is this: All the materials found in the natural environment needed to produce goods and services, such as water, trees oil.

• labour

• capital

• land

• none of the above

Which resource is this: physical and mental effort needed to produce goods and services (example: agriculture workers to produce food) ?

• land

• capital

• labour

• none of the above

Which resource is this: the money that people use to invest and make more money?

• capital

• labour

• land

• none of the above

______________is about producing things people want. It involves producers.

_______________is about what people want. It involves consumers.

What happens when the supply of a product can meet the demand of a product?

• there is a state of equilibrium in price.

• Supply will go down, while prices will go up

• Demand will go down, while supply will go up

• Price will go down. while demand will go up

When price goes up. What happens to demand?What happens to supply?

• there is a state of equilibrium in price.

• Supply will go down, while prices will go up

• Demand will go down, while supply will go up.

• Price will go down. while demand will go up

When demand goes up. What happens to supply? What happens to price?

• there is a state of equilibrium in price.

• Supply will go down, while prices will go up

• Demand will go down, while supply will go up.

• Price will go down. while demand will go up