Economic Systems Assessment

Scarcity means limited __________ and unlimited __________.

• Resources

• Money

• Wants

• Needs

The point where supply and demand meet is called __________.

• equilibrium
• deficit
• surplus
• price floor

• Goods are physical items you can __________ or __________.

• store or display
• trade or exchange
• buy or sell
• produce or manufacture

• Services are activities someone does for __________.

• animals
• others
• themselves
• machines

11. When there is little or no competition, prices tend to __________.

• decrease
• remain stable
• fluctuate
• increase

What does scarcity mean?

• Limited availability of resources to meet unlimited wants.

• The concept of having unlimited resources for limited needs.

• The ability to fulfill all wants without limitations.

• Refers to the abundance of resources available.

When something is scarce, people must make a __________.

• sacrifice
• choice

• trade-off
• compromise

When supply is low and demand is high, prices will usually?

• fluctuate unpredictably
• increase
• remain the same
• decrease

What is opportunity cost?

• Opportunity cost is the total cost of production minus the cost you paid for the item.

• Opportunity cost is the monetary value of a product that you choose to make it in order to sell it.

• Opportunity cost is the time spent on a task you choose rather than what you are asked to do.

• Opportunity cost is the cost of the next best alternative that is given up when making a choice.

In a command economy, who makes the major decisions?

• Individual entrepreneurs
• Local communities
• Private corporations
• The government