Economics Basics Practice

A traditional economy...

In this kind of economy, individuals can buy/sell whatever they want, but the government has some control

Shelly decides to sell t-shirts by the seashore. There are many other t-shirt vendors there. This is an example of:

What country is a good example of a command economy?

What word means to exchange goods and services?

When supply is more than demand, should prices go up or down?

There's only one kind of cell phone on the market and demand is high. There is motivation to enter the cell phone market

A market economy is driven by supply & demand, individual needs & wants

A scarce resource is a limited resource.

When demand is more than supply, prices should go down.

Karla decided to buy an expensive new car, instead of a cheaper used car. What is her opportunity cost?

What is an incentive?

A system by which goods and services are produced & distributed is an...

Opportunity cost is the benefit of the second choice you didn't choose.

In a pure command economy, you can start your own business and set your prices.

scarcity means

Sandy spent $90 on supplies, but made $150 after expenses were subtracted. This is an example of:

A producer is someone who purchases or consumes goods/services.

Economics is the study of how scarce resources are managed and distributed.

The USA has the closest example of a market (capitalist) economy.