Scarcity
This is the name for the next best alternative given up when a choice is made.
What is opportunity cost?
This term refers to all the alternatives that are given up when making a decision.
What are trade-offs?
This economic system relies on customs and traditions to make production decisions.
What is a traditional economy
This is the study of how individuals and societies make choices under conditions of scarcity.
What is economics
If you choose to spend $10 on a movie ticket instead of a book, this is the opportunity cost.
What is the book?
When a business decides to use its resources to produce cars instead of trucks, this is an example of a...
What is a trade-off?
In this type of economy, the government makes all major economic decisions.
What is a command economy
A person who starts a business by using land, labor, and capital is known as this.
What is an entrepreneur
A person decides to attend college instead of starting a job. This is the opportunity cost of attending college.
What is the income from working a job?
If you spend your time playing video games instead of studying, this is the trade-off.
What is studying?
In this economic system, businesses compete freely with little government interference.
What is a market economy
This type of cost includes everything you give up when you make a decision, not just the money spent.
What is total cost
The opportunity cost of choosing to sleep for an extra hour instead of studying for a test could be this.
What is a lower test score?
Countries face trade-offs when they must decide between spending on this versus spending on consumer goods
What is military defense (or defense spending)?
This mixed economy combines elements of both market and command economies.
What is a mixed economy
The principle that explains why businesses cannot produce unlimited amounts of goods and services.
What is scarcity
This term refers to the decision-making process of allocating limited resources to satisfy various wants.
What is resource allocation?
This is the reason opportunity cost is such an important concept in economics.
What is "it helps individuals and businesses make informed decisions by considering what they give up when they make a choice"?
Choosing to work an extra shift instead of attending a family gathering is an example of a trade-off involving this resource.
What is time?
The concept of scarcity applies to all economic systems, but these two economic systems approach resource allocation very differently.
What are command and market economies
This concept explains why societies must answer the three basic economic questions: What to produce? How to produce? For whom to produce?
What is resource scarcity