Economic Systems
What term describes the economic system where resources are controlled by the government?
What is a command economy?
What happens to prices when demand exceeds supply?
What is an increase in prices?
What are things required for survival, such as food and shelter, called?
What are needs?
What is the first step in the decision-making process regarding economic choices?
What is defining the problem?
In which economic system do individuals have the freedom to own resources and make decisions?
What is a market economy?
If a new product is highly popular and only one company produces it, what is likely to happen to the price?
What is an increase in price due to limited supply?
What are items that add comfort and pleasure to life but are not essential for survival?
What are wants?
When a person decides to purchase a new shirt instead of going out, what economic concept does this illustrate?
What is an economic trade-off?
What is the economic system called that combines elements of both command and market economies?
What is a mixed economy?
What is the relationship between price and quantity supplied known as?
What is the law of supply?
What is the term for the economic problem that arises because resources are limited while wants are unlimited?
What is scarcity?
What is the value of the next-best alternative that is given up when making a choice called?
What is opportunity cost?
Which type of economy is primarily focused on meeting people’s basic needs?
What is a traditional economy?
What economic principle explains why prices drop when many companies produce a product in high demand?
What is competition?
In every nation, what must decisions be made about regarding wants and needs?
What is how to allocate limited resources?
What is the final step in the decision-making process?
What is reviewing your decision?
Which country is known as a free enterprise system?
What is the United States?
According to the law of demand, what happens to consumer demand as prices decrease?
What is an increase in demand?
How do consumers "vote" with their dollars in a market economy?
What is by choosing to buy certain products over others?
A risk-taker who uses resources in a new way to create a product or service is known as what?
What is an entrepreneur?