CE Module 9 Test Review

What economic concept forces us to make choices?

• Law of Supply
• opportunity cost
• scarcity
• amount of government involvement

What we give up when a decision is made (ex. I play xbox instead of playing outside)

• opportunity cost
• how money, resources, and products flow between households, businesses, and governemnt
• resources
• lower

What are the "things" used to provide goods and services?

• sole proprietorship
• how money, resources, and products flow between households, businesses, and governemnt
• resources
• money transfers, loans, encourage saving and investing

What plays the greatest role when determining a country's economy?

• bring new products to the market
• amount of government involvement
• sole proprietorship
• consumers to decide what gets produced - we buy it, they make it; we don't buy it, they don't make it

Which type of economy has the least amount of choice?

• command
• scarcity
• opportunity cost
• equilibrium

Which type of economy has competition and choice and little government involvement?

• resources
• equilibrium
• mixed economy
• competition

What determines prices in a free market?

• resources
• competition
• supply and demand
• equilibrium

The rivalry between sellers is called -

• amount of government involvement
• Law of Supply
• competition
• equilibrium

What is consumer sovereignty?

• consumers to decide what gets produced - we buy it, they make it; we don't buy it, they don't make it
• resources
• opportunity cost
• lower

Which law states producers will make more of a product when they can sell it at higher prices and make less when prices are lower?

• scarcity
• agriculture (soybeans) and manufactuting (semiconductors)
• Federal Reserve
• Law of Supply