Chp. 1 What is Economics?

When a supply and demand chart’s coordinates are plotted on a graph, equilibrium is

The desire for profit motivates people to spend money.

Demand is the amount of a product of a service producers are willing to provide.

Most economies are mixed.

A system in which economic decisions are based on a society’s values, culture, and customs.

free enter system is an econ in which privately owned businesses operate & compete for profits w/ limited gov't regulat

Markets are usually not in equilibrium

A system in which a central authority controls economic activities.

A trade-off is the choosing of one item, which involves giving up another.

Buyers and users of goods and services.

In a market economy, competition for profits encourages:

Technology refers to the application of scientific knowledge to practical uses and product development.

Which of the following would be most likely to cause the price to increase?

Items a person would like to have but that are not essential to life.

What is the key incentive for individuals and businesses to produce goods and services?

A market economy and a command economy differ primarily in

In a market economy, consumer needs and wants determine, to a large extent, what goods and services will be produced.

Qualities and characteristics people have within themselves.

Human resources includes:

External resources such as money, time, equipment, and possessions.

Which of the following is true of supply and demand?

Items a person must have to survive.

The value of the best option or alternative given up.

Services are physical items such as food and clothing.

Innovation is:

In a market economy, what determines how to divide the goods and services produced?

Individuals or businesses that provide goods and services to meet demand.

Scarcity refers to the challenge of resources being limited while wants are unlimited.

A system in which privately owned businesses compete for profits with limited government regulation.

Which of the following is one of the four qualities of a market economy?