Vocabulary
What term describes the condition where unlimited wants exceed limited resources?
What is scarcity?
What are the four factors of production?
What is land, labor, capital, and entrepreneurship?
What is the difference between scarcity and shortage?
Scarcity is permanent, shortages are temporary
What is a free market economy?
What is an economic system where prices are determined by unrestricted competition between privately owned businesses?
Who is known as the father of modern economics?
Who is Adam Smith?
What is a good that lasts for a long time and is used over time?
What is a durable good?
Which of the following is NOT a factor of production: land, labor, capital, or scarcity?
What is scarcity?
Give an example of a shortage.
What is a temporary lack of a product, like a shortage of toilet paper during a crisis?
What is a centrally planned/command economy?
What is an economy in which production, investment, prices, and incomes are determined centrally by the government?
What is the term for the lowest amount you can be paid, set by the government?
What is minimum wage?
What is a common example of a non-durable good?
Food, pencils, paper towels etc.
What term describes the process of combining resources to create goods and services?
What is the production process?
Identify the correct definition of scarcity.
What is the limited availability of resources to meet unlimited wants?
What type of economy combines elements of both capitalism and socialism?
What is a mixed economy?
Workers becoming more educated to increase efficiency and specialization is an example of an increase of
What is human capital?
What is defined as the value or satisfaction gained from a good or service?
What is utility?
What is the term for the cost of the next best alternative when a choice is made?
What is opportunity cost?
What does the Production Possibilities Curve illustrate?
What is the maximum output possibilities for two goods given a set of inputs?
Define capitalism.
What is an economic system based on private ownership and the free market?
What are the three economic questions
What goods and services should be produced, How should the goods and services be produced, Who consumes these goods and services??
What is a decision that has to be made in order to decide whether money and resources should be allocated to goods for protection and safety, or goods needed for survival like food?
What is guns or butter?
Ray Kroc, founder of McDonalds, is an example of which factor of production?
What is entrepreneurship?
How does efficiency relate to the use of resources in an economy?
What is efficiency means producing the maximum output from available resources?
What type of economy is the United States?
What is a free enterprise, mixed economy?
What type of economy relies on custom and habit and most people do the same jobs as their parents?
What is a traditional economy?