How Economic Decisions Are Made

Scarcity occurs when

• There is an abundance of resources

• peoples needs and wants are limited

• peoples needs and wants are unlimited and resources are very limited

• needs and wants are met

Economic Decision Making is...

• The process of choosing which needs and wants to satisfy

• the process of not making the right choice

• the process of solving problems

• the process of getting everything you want

Profit is...

• The money spent on inventory

• the money you charge customers

• The total amount of Money made by a business

• The difference between the revenues earned by a business and the costs of operating the business

Opportunity Cost is...

• the choice you make

• The Value of the next-best-alternative.

• the best choice

• the worst chice

Which of the 4 main functions of business decides how things will be priced?

• Marketing

• Production

• Management

• Finance

Which of the 4 functions of business ensures that a business is meeting its goals?

• Finance

• Marketing

• Management

• Production

Which of the 4 functions of business determines the amount of capital needed for a business?

• Management

• Finance

• marketing

• Production

Which of the 4 functions of business is responsible for creating and obtaining goods or services for sale?

• management

• finance

• marketing

• Production

Which of the following is NOT a component of Capitalism

• Private Property

• Government Ownership

• Freedom of

• Profit

Capitalism is...

• government ownership of resources

• Private ownership of resources by individuals rather than by the government

• Public Ownership of resources rather than private

• traditional ownership of resources