Semester Exam Part 2

Scarcity leads the government and individuals to make--

• Difficult Choices
• Easy Choices

You have ten dollars to go to the movies or to go play mini golf. You decide to play mini golf. What is the movies to you?

• Your vacation
• The best option
• Your opportunity cost
• Your free ticket (you're going to sneak in and still go)

Entreprenuers take a risk in order to make a

• Partner
• Deficit
• Profit
• Opportunity Cost

What determines the prices of goods and services?

• Interaction of Supply and Demand
• Supply Alone
• Demand Alone

Competition results in what three things?

• Better Quality

• No Prices

• Lower Prices

• More Choices

• Lack of Choice

Buyers determine through their purchases what goods and serives will be produced. What is this called?

• Consumer Production
• Consumer Soveriegnty
• Consumer Rights

When the prices is HIGH producers will produce MORE. What is this concept called?

• Law of Supply
• Law of Demand
• Equillibrium Price

When the price is LOW consumers will buy more of a product. What is this called?

• Law of Supply
• Law of Demand
• Equillibrium Price

The price point where supply and demand meet. What is this term called?

• Law of Supply
• Law of Demand
• Equillibrium Price

In a Free Market enonomy individuals and business make economic desicions with ...

• A lot of government interference
• Little government interference