Unit 1 Study Guide

Front

___________ is the next best alternative given up as a result of a decision.

Back

Opportunity Cost

Front

___________​ is limited resources with unlimited wants.

Back

Scarcity

Front

​ ___________ are all the alternatives given up when choosing one option over another.

Back

Trade-offs

Front

___________​ is when fewer resources are used than the economy is capable of.

Back

Underutilization

Front

_____________ is a system combining market freedom and government regulation.

Back

Mixed Economy

Front

_____________ is an economic system in which decisions on the 3 key economic questions are based on voluntary exchange in markets

Back

Market Economy

Front

_____________ is an economic system in which the government makes all decisions on the 3 key economic questions

Back

Command Economy

Front

_____________ is an economic system that relies on habit, custom, or ritual to decide the 3 key economic questions

Back

Traditional Economy

Front

___________ is where firms purchase factors of production from households

Back

Factor Market

Front

___________ is where households purchase goods and services from firms

Back

Product Market