| A | B |
|---|
| What economic question is answered if you decide to build low-income housing instead of high-income housing? | what to produce |
| What is scarcity? | ther is not enough of it to satsfy people's wants |
| What term describes the dollar value of all final goods and services produced in a country in a twelve-month period? | gross domestic product |
| Society must choose based on its needs. Which of the three basic questions does this describe? | what to produce |
| Society must choose based on its resources. Which of the three basic questions does this describe? | how should we produce it |
| What economic concept is described when one purchases a pair of jeans instead of a CD? | opportunity cost |
| What philosophy states that government should not interfere with business? | laize fair |
| Who said that competition acts as an “invisible hand” that guides resources to their most productive uses | Adam Smith |
| What is an organized way to provide for the wants and needs of the people? | economic system |
| What country is an example of a market economy? | United States |
| Which group of people ultimately determines the products that a free enterprise economy produces? | consumers |
| What is an economic system in which decisions are made by buyers and sellers? | market |
| What economic system best describes the United States? | free enterprise system |
| What is the purpose of government in a command economy? | make major economic decisions |
| What is a rise in the general level of prices? | inflation |
| What are disadvantages of a command economy? | it is not designed to meet wants and needs of the consumer, has little flexibility to deal with day to day change, little individuality |
| Who is the author of The Wealth of Nations? | Adam Smith |
| What are some advantages of a traditional economy? | Stable, predictable like, everyone knows their role in the economy |
| What are the advantages of a market economy? | gives producers and consumers freedom, able to adjust to change gradually, variety of goods and services |
