Economics Chapter 19-21 Study Guide

Why must people answer the three economic questions of “what to produce, how to produce it, and for whom to produce it”?

• • resource limitations (scarcity)

• • technological changes

• • distribution challenges

• government requirements

productive resources supplied by nature (choose 2)

• natural resources

• capital goods

• minerals, ores, trees

• buildings, machinery, equipment, tools

• human resources

talents and skills of people that contribute to the productions of goods and services (choose 2)

• natural resources

• capital goods

• welders, doctors, teachers, factory workers

• buildings, machinery, equipment, tools

• human resources

manmade materials used to produce other goods and services (choose 2)

• natural resources

• capital goods

• welders, doctors, teachers, factory workers

• buildings, machinery, equipment, tools

• human resources

Which economic question is answered by "demand" and "means of distribution"?

• • What to produce?

• • How to produce?

• • For whom to produce?

• • Which one to produce?

• Where to produce?

In the United States, the​ (a)   is more likely to determine who gets goods and services than the ​ (b)   .

• market
• government

the quantity of a good or service that a business is willing and able to make available for sale at a specific price

• supply

• demand

• cost

• scarcity

the quantity of a good or service that a business is willing and able to purchase at a specific price

• supply

• demand

• cost

• scarcity

What happens to price when the situation in the graphic occurs?

• • Price goes up.

• • Price goes down.

• • Price stays the same.

What happens to price when the situation in the graphic occurs?

• • A

    Price goes up.

• • Price goes down.

• • Price stays the same.