Test Review

Front

What is the process of using goods and services called?

Back

Consumption

Front

Which economic activity involves trading one good or service for another?

Back

Exchange

Front

What is the process of creating goods and services

Back

Production

Front

When you give up something in order to gain something else, what is this called in economics?

Back

Trade-off

Front

What is a consumer?

Back

anyone who uses goods and services.

Front

Opportunity cost

Back

Opportunity cost is the benefit that is lost when you choose to use scarce 

resources for one purpose rather than another.

Front

How does scarcity affect decision-making in economics?

Back

Scarcity forces individuals and societies to make choices about how to allocate limited resources to satisfy unlimited wants.

Front

If you spend money on a concert ticket, what is the opportunity cost of that decision?

Back

The opportunity cost could be the alternative things you could have spent the money on, like saving it or purchasing another good or service.

Front

Why are trade-offs a common feature in economics?

Back

Trade-offs occur because resources are limited, so individuals and societies must make choices about how to allocate those resources.

Front

How does exchange facilitate economic activity?

Back

Exchange allows individuals or organizations to trade goods or services that they need or want for those they do not have, improving overall efficiency.