Economics - Unit 7

What is consumption?

• Use of goods and resources

• Combination of resources to create a product

• Inability to satisfy all wants and needs at the same time

• What is given up when a choice is made

What are the four types of resources?

• Natural

• Entrepreneurship

• Human

• Leadership

• Capital

William has $50. He decides to put the $50 towards a pair of shoes rather than taking out his girlfriend. What was his opportunity cost?

• His girlfriend dumps him

• Taking out his girlfriend

• The shoes

• His $50

What is given up when a choice is made?

• Scarcity

• Production

• Consumption

• Opportunity Cost

What is consumer sovereignty?

• Producers determined what is made by what they produce

• Supply and Demand

• Consumers determine what is made by what they purchase

• Resources determine what is made

What type of economic system is completely government or centrally planned?

• Traditional

• Command

• Free Market

• Mixed

What is the most common economic system in the world?

• Mixed

• Command

• Traditional

• Free Market

Tax money allows the government to provide us with

• A decrease in goods and services

• A decrease in government spending

• Private property

• Public goods and services

Which amendment allows the government to tax personal and business incomes?

• 15

• 14

• 10

• 16

What causes economic behavior to change?

• Incentive

• Scarcity

• Consumption

• Prodcution