Chapter 1 Review - Economic Decisions and Systems

Question 1

Scarcity forces you to make...

Accepted Answer

Choices

Question 2

What is the 2nd step in the decision-making process?

Accepted Answer

Identify the Choices

Question 3

Value of the next-best alternative that you did not choose.

Accepted Answer

Opportunity Cost

Question 4

What are economic systems based on?

Accepted Answer

How the country answers the 3 economic questions.

Question 5

If prices increase, demand will do what?

Accepted Answer

Decrease

Question 6

What are the 4 principles of capitalism?

Accepted Answer

Competition, Profit, Private Property, Freedom of Choice

Question 7

Type of economy used in countries that are less developed

Accepted Answer

Traditional

Question 8

Things that are intangible and have no physical characteristics

Accepted Answer

Services

Question 9

Things that add comfort and pleasure to your life.

Accepted Answer

Wants

Question 10

If prices decrease, supply for Krispy Kremes will do what?

Accepted Answer

Decrease

Question 11

When you give something up to have something else

Accepted Answer

Trade - Off

Question 12

What economic system has the highest level of government involvement?

Accepted Answer

Command

Question 13

Those who determine which products and services will be available for sale.

Accepted Answer

Producers

Question 14

What are the 3 factors of production?

Accepted Answer

Natural, Human, Capital

Question 15

The private ownership of economic resources by individuals, rather than by the government.

Accepted Answer

Capitalism

Question 16

How is market price determined?

Accepted Answer

the point where supply and demand are equal

Question 17

The quantity of goods and services that consumers are willing and able to buy

Accepted Answer

Demand

Question 18

Which is not a basic economic question?

Accepted Answer

How much will the goods and services cost?

Question 19

What is not a human resource?

Accepted Answer

Tools for building

Question 20

What is an example of capital resources?

Accepted Answer

cement

Questions 20