Basics of Economics Review

What is determined by the interaction of supply and demand.

The selection of an item or action from a set of possible alternatives.

The government's role is greater than Free Market and less than a Command economy.

In which type of a resource does a person take a risk to bring a new product to the market that increases competition?

The using of goods and services

Lack of consumer choice; government owns all businesses and resources.

Final earnings after all expenses have been paid.

The amount of a good or service consumers are willing and able to buy at a certain price.

Combining all types of resources to make goods or provide services.

Profit motivated: total consumer sovereignty; minimal government involvement.

This is what is given up when a choice is made. The next highest valued alternative.

This is the inability to satisfy all wants at the same time.

The amount of a good or service producers are willing and able to sell at a certain price.

The rivalry between producers/sellers results in better quality goods or services at a lower price.

Consumers determine through purchases, what goods and services will be produced.

The factors of production that are used to create goods or services.

The things that incite or motivate - used to change economic behavior.

The type of business where there is a single owner who takes all the risk but keeps all the profit.