ALLEN-CE. 11a, b, and 12a Homework

Which of the following is NOT one of the basic questions of economics?

• What will be produced?

• How will it be produced?

• What will it be produced with?

• For whom will it be produced?

___________________ is the inability to satisfy all wants at the same time.

• Scarcity

• Resources

• Choice

• Production

Resources are factors of production that are used in the production of goods and services. Please select the 4 types of resources.

• Natural

• Human

• Capital

• Time

• Entrepreneurship

_________________ is selection of an item or action from a set of possible alternatives.

• Production

• Scarcity

• Resources

• Choice

_______________ ______________is what is given up when a choice is made (the second best alternative).

• Opportunity cost

• Supply and Demand

• Free Market

• Mixed Economy

_______________ is the combining of human, natural, capital, and entrepreneurship resources to make goods or provide services.

• Choice

• Production

• Consumption

• Resources

_________________ is the using of goods and services.

• Consumption

• Resources

• Scarcity

• Production

In what type of economy are decisions based on custom and historical precedent and people often perform the same type of work as their parents and grandparents, regardless of ability or potential.

• Free market economy

• Command economy

• Traditional economy

• Mixed economy

In what type of economy is there Central ownership (usually by government) of property/resources and centrally planned economy. Also there is lack of consumer choice

• Traditional economy

• Free market economy

• Mixed economy

• Command economy

In what type of economy is there private ownership of property/resources , profit motive, competition, consumer sovereignty, individual choice and minimal government involvement in the economy.

• Traditional economy

• Free market economy

• Command economy

• Mixed economy