Economics Review part 1

Give an example of money

Give an example of a good

Give an example of labor

Give an example of capital

Give an example of a resource

Opportunity costs exist when

• people enjoy buying very expensive things

• there are only a few sellers in an industry

• land, labor, can capital are too expensive

• people make choices about what to buy

The law of demand states that as price _____ demand _______.

• goes up.... goes down

• goes up.... goes up

• goes down.... goes down

• goes down.... stays the same

If an item is low in supply the seller will MOST likely

• slash its price

• raise the price

• cancel orders for it

• buy less in the future

Entrepreneurs would do all of these things, EXCEPT

• risk their assets

• open a new business

• use up the world's resources

• want to make a healthy profit

Name and explain one factor that can influence demand.