Unit 2: Introduction to Economics Vocabulary Concepts Assessment

Action or activities that are performed for another and are purchased by the consumer.

Study of how people, businesses, and gov't.s make choices when faced with limited resources.

Any human made resource that is used to produce other goods and services (buildings, machines)

A Market Economy exists when:

This is the cost a producer incurs when they hires 1 more employee to work at their restaurant.

We make choices everyday. What is the best alternative that we give up when we make a choice?

Created when consumers want more of good/services than producers are willing to make available.

This economic system is market based and has government involvement to some extent.

A firm that is the only source of a product or service.

This is the contest between companies to get consumers to buy their products and/or services.

Person who decides to combine all the factors of production and create goods or services?

This economy is based off of customs, beliefs in small rural communities.

The economy which decisions on the 3 economic ?s are based on supply and demand only.

What is the end results between wants and needs? We make several everyday.

A _______ economy is when the gov't. controls all the resources/industries in a country.

This system is where you are free to buy, own, startup anything you want & make a profit.

There are how many different types of economies?

Theory states the gov't shouldn't be involved in market -let the "invisible hand" drive it.

Described as limited amounts of resources that are available to meet unlimited wants and needs.

This is a physical object that is produced for consumer to buy/use.

What is the effort people devote to a task for which they are paid a wage?

The benefit a consumer receives from purchasing or consuming one more unit of something.

Knowledge and skills a worker acquires through education and experience?

Land, Labor, capital and Entrepreneur

A mixed Economy exists in a country when:

What is the driving force behind capitalism?