Honors Economics Chapters 1 and 2

What is the BEST way for a business to make a profit? 

The resources and products owned by individuals or businesses.

An economic system in which people rely on customs to make the Basic Economic Decisions.

When people believe they will benefit in some way, they will engage in:

The Circular Flow of Economic Activity shows how ____ exchange money, resources, and products.

Which of the following is NOT part of the supply chain?

An economic system in which individuals control some resources and government controls others.

In Resource Markets, businesses compete against ___________ for land, labor, and capital. 

Which is not one of the Basic Economic Decisions?

An economic system in which the government fully controls the Factors of Production.

The major goal of any business is to make what?

The Economic Goal in which the basic needs of every person are met.

In Product Markets, buyers compete with _____________ to purchase goods and services.

Scarcity means that:

I can buy stuff with my money!  It is a/an ________________.

An economic system in which the Factors of Production are fully controlled by individuals.

What is the difference between microeconomics and macroeconomics?

The decision to spend 5 additional minutes styling your hair in the morning will be based upon:

Economics is the study of:

What makes up the "Invisible Hand" of which Adam Smith wrote?

Households are both consumers and __________________. 

Gas prices rise!  Producers will _____________; Consumers will __________________.

My money indicates the relative value of products and resources!  It is a/an ________________.

The ability of individuals freely to make choices for their own benefit is the foundation of: 

Land, Labor, Capital, Entrepreneurship

What is the highest value benefit given up as a result of making a choice?

I can save my money!  It is a/an _____________________.

A process in which businesses and people focus on making one part of a product.

A positive reward for making a particular choice or behaving in a certain way.

Adam Smith wrote it.