Standard CE. 11a and CE. 11b.: How Economic Decisions are Made in the Marketplace

In which economy do people often perform the same type of work as their parents, regardless of ability or potential?

Centrally planned economy and lack of consumer choice.

Consumers will buy more of a good or service at lower prices and less at higher prices.

The interaction of supply and demand determines---

Decisions are based on custom and historical precedent.

According to the table below, what will happen if the price for a cookie decreases from $2.00 to $1.00?

What leads to the production of higher quality goods at a lower price?

Individuals and businesses are the decision-makers for the private sector. The govt. decides for the public sector.

What is the inability to satisfy?

What type of resource is pictured here?

The point where supply and demand meet.

Combining human, natural, capital, and entrepreneurial resources to make goods and services is called---

Consumers determine, through their purchases, the goods, and services that are produced. This idea is known as---

Producers will produce more when they can sell at a high price and produce less to sell at a low price.

Who are the decision-makers for the private sector in the U.S. economy?

Property and resources are owned by individuals, and there is minimal government involvement.