WorksheetsUnit 3 Test--Scarcity and Free Market Economy
Total questions: 20
Worksheet time: 10mins
Are Basic to survival
Needs
Wants
Scarcity
Factors of Production
Make Life easier or more pleasant
Needs
Wants
Factors of Production
Scarcity
Goods
are intangible (you cannot touch them)
make life easier
are necessary for survival
are tangible (you can touch them)
Services
are intangible (you cannot touch them)
make life easier
are necessary for survival
are tangible (you can touch them)
The economic resources used to make goods and provide services are known as
natural resources
the factors of production
the unlimited wants
resources are not used in goods or services
Opportunity Cost is
one of your choices
the option that you actually choose
the option(s) that you give up
another word for scarcity
How do consumers tell the producers what they are willing to buy.
Opportunity cost
Goods
Dollar Votes
Alternatives
Trying to satisfy unlimited wants with limited resources.
Profit Motive
Services
Goods
Scarcity
In which type of Economic system do the consumers and producers answer the three questions with little government interference?
Free Market System
Custom Based System
Directed or Planned System
Mixed System
All of the following produce services EXCEPT
McDonald's
Wally's auto repair
Ford (the car maker)
Brooklyn High School
Which of the following describes a market economy?
The government decides to move you and many of your friends to the country so you can study farming
You notice a lot of people in your neighborhood have dogs so you decide to start a dog walking business
You grow up in a small village and are a fisherman just like your father and grandfather
The leader of your country decides you will become a coal miner
People are willing to start new businesses OR get jobs because of...
the profit motive
competition
scarcity
Factors of Production
What would be considered a Need?
Water
Pepsi
FIJI Bottled Water
Dr. Pepper
Scarcity forces individuals and countries to
get everything they want when they want it.
make decisions on how to use their limited resources
use resources to make more resources
buy more resources so they can have what they want
ALL of the following are names for our economy EXCEPT
Free Market
Free Enterprise
Capitalism
Free Scarcity
The desire to work for money is called
Scarcity
Economic Resources
The Profit Motive
Directed Economy
People who make things or who provide services are known as
Consumers
Producers
Manufacturing Businesses
Nice People
If you own a small restaurant, Which of the following is a CAPITAL resource?
The chef
The grill you use to cook the food
The oil you use to cook some of your food
The ground meat you use for your hamburgers
Competition helps
Keep Prices Low
Keep Quality of Goods Higher
Encourage business to make NEW products
ALL of these are TRUE
Predict what would happen if there wasn't competition among businesses in free market economy.
Prices would be high
There would not be many choices
Quality would be lower
ALL of these are True
