ECON 1st SW Exam

The basic economic problem caused by limited resources and unlimited wants is called

• Scarcity

• Substitution Effect

• Equilibrium

• Utility

Replacing a more expensive item with a cheaper one is known as the

• Substitution Effect

• ineslastic

• private property

• diminishing marginal utility

When demand for a product does not change much even if the price changes, it is

considered

• inelastic

• mixed economy

• utility

• profit motive

The struggle among sellers to attract consumers is called

• competition

• inelastic

• scarcity

• mixed economy

The point where supply equals demand is called

• equilibrium

• private property

• market economy

• market

The drive to improve material well-being through earning profits is known as the

• profit motive

• mixed economy

• substitution effect

• competition

The usefulness or satisfaction a consumer gets from a product is called

• utility

• private property

• equilibrium

• profit

The principle that each additional unit consumed provides less satisfaction is called

• diminishing marginal utility

• scarcity

• competition

• consumerism

Most economies in the world today are a __________, combining elements of market

and command.

• mixed economy

• free market economy

• command economy

• economy

The right to own and control possessions as you wish is known as

• private property

• utility

• competition

• inelastic