Civics/Economics B Vocabulary Unit 2

Fill in the blank: Economics is the study of how individuals and societies allocate _______ resources to satisfy unlimited wants and needs.

• limited

• abundant

• excess

• finite

Scarcity is the fundamental economic problem of having _______ resources to meet unlimited wants.

• limited

• plentiful

• excess

• abundant

Fill in the blank: Economic Quest is the pursuit of solutions to economic problems, such as _______ allocation and wealth distribution.

• resource

• labor

• capital

• investment

Opportunity Cost is the value of the next best _______ given up when making a choice.

• alternative

• solution

• option

• choice

Fill in the blank: Fixed Cost is a cost that does not change with the level of _______ or output.

• production

• labor

• sales

• investment

Fill in the blank: Variable Cost is a cost that fluctuates based on the level of _______ or output.

• production

• sales

• demand

• activity

Fill in the blank: Competition is the rivalry between businesses or individuals to attract _______ and achieve economic success.

• customers

• suppliers

• employees

• investors

Markets are systems or places where buyers and sellers exchange _______ and services.

• goods

• money

• information

• experiences

Fill in the blank: Capitalism is an economic system based on private ownership and free _______.

• markets

• competition

• trade

• enterprise

Incentives: Rewards or punishments that influence economic behavior. Fill in the blank: Incentives are rewards or punishments that influence economic _______.

• behavior

• activities

• choices

• investments