Introduction to Economics

Economics is a science that examines how goods and services are produced, sold, and used.

• True

• False

Are the economic resources a nation uses to make goods and supply services for its population

• Factors of buying

• Factors of selling

• Factors of production

Develops when demand is higher than the available resources

• Wants

• Needs

• Scarcity

Is the value of the next best option that was not selected

• Opportunity buyins

• Opportunity Cost

• Opportunity selling

Government makes all economic decisions for its citizens

• Free economy

• Mixed economy

• Command economy

In a ________________economy, individuals are free to make their own economic decisions

• Market

• Command

• Mixed

Is an economic system where the economic resources are privately owned by individuals rather than the government

• Capitalism

• Command economy

• Mixed economy

Price of a product is determined by the relationship of the supply of a product and the demand for the product

• Law of economy

• Law of buying and selling

• Law of supply & demand

Consumers are free to choose the goods and services they buy

• True

• False

Is the action taken by two or more businesses attempting to attract the same customers

• Fighting

• Competition

• None of the above