1. Economic Concepts
STANDARD CE.11a

2. What is Economics?
The study of how we make decisions in a world where resources are limited.

3. Scarcity
The inability to satisfy all wants at the same time.

4. Why does scarcity exist?
All resources and goods are limited

6. This requires that choices be made.

7. Resources
Factors of production that are used in the production of goods and services.

8. Types of resources
Natural
Human
Capital
Entrepreneurship

9. Choice
Selecting an item or action from a set of possible alternatives.

10. Why must we make choices?
Because goods and
services are limited.

11. Opportunity cost
What is given up when a choice is made—the highest valued alternative forgone.

12. Individuals must consider the value of what is given up when making a choice.

13. Price
The amount of money exchanged for a good or service.

14. Interaction of supply and demand determines price.

15. Price determines who acquires goods and services.

16. Incentives
Things that incite or motivate. Incentives are used to change economic behavior.

18. Supply and demand
Interaction of supply and demand determines price.

19. Supply
The amount of a good or service that producers are willing and able to sell at a certain price.

20. Demand
The amount of a good or service that consumers are willing and able to buy at a certain price.

21. Production
The combining of human, natural, capital, and entrepreneurship resources to make goods or provide services.

22. Resources available and consumer preferences determine what is produced.

23. Consumption
Using goods and services.

24. Consumer preferences and price determine what is purchased.

25. QUIZ

26. The inability to satisfy all wants at the same time is called —
a. resources
b. scarcity
c. choice
d. price

27. Scarcity of resources and goods —
a. allows unlimited choices
b. means people can have what they want
c. requires high payment
d. requires that choices be made

28. All resources and goods are —
a. nearby
b. plentiful
c. limited
d. unavailable

29. Factors of production that are used in the production of goods and services are called—
a. choice
b. scarcity
c. resources
d. price

30. Natural, human, capital, and entrepreneurship are all types of —
a. opportunity cost
b. resources
c. scarcity
d. price

31. Selecting an item or action from a set of possible alternatives is called —
a. opportunity cost
b. scarcity
c. choice
d. price

32. Individuals must choose/make decisions about desired goods and services because these goods and services are —
a. plentiful
b. limited
c. free
d. extinct

33. Another phrase for what is given up when a choice is made
a. opportunity cost
b. limited resources
c. goods and services
d. choice

34. Individuals must consider the value of what is given up when making a —
a. choice
b. price
c. scarcity
d. resource

35. The amount of money exchanged for a good or service is called the —
a. opportunity cost
b. scarcity
c. choice
d. price

36. Interaction of supply and demand determines —
a. choice
b. price
c. opportunity cost
d. scarcity

37. What determines who acquires goods and services?
a. scarcity
b. incentives
c. opportunity cost
d. price

38. Things that incite or motivate are called —
a. supply and demand
b. incentives
c. production
d. consumption

39. Which of the following are used to change economic behavior?
a. supply and demand
b. incentives
c. production
d. consumption

40. The amount of a good or service that consumers are willing and able to buy at a certain price is called—
a. supply
b. demand
c. incentive
d. consumption

41. The amount of a good or service that producers are willing and able to sell at a certain price is called—
a. supply
b. demand
c. incentive
d. consumption

42. What determines the price of an item?
a. Interaction of supply and decision
b. Interaction of choice and incentive
c. Interaction of consumption and incentive
d. Interaction of supply and demand

43. The combining of human, natural, capital, and entrepreneurship resources to make goods or provide services is called —
a. incentives
b. supply and demand
c. production
d. consumption

44. What determines what is produced?
a. Resources available and consumer preferences
b. Interaction of supply and demand
c. Interaction of supply and decision
d. Limited resources and consumer choices

45. Using goods and services is called —
a. supply and demand
b. incentives
c. consumption
d. production

46. Consumer preferences and price determine what is —
a. purchased
b. production
c. incentives
d. supply and demand