Name: _______________________
Unit 5 Study Guide – Economic Concepts
SOL: CE.11
1. We are unable to satisfy all of our needs
and wants to due to…
Scarcity
11. What is the name for the desire of
consumers to purchase a product?
Demand
2. Scarcity causes people to make…
Choices
12. If supply is low and demand is high, price
will be …..
high
3. Human, Natural, Capital, and
Entrepreneurship are examples of?
Resources
4. What is using resources to make products
called?
Production
5. The cost of what you give up when you
make a decision is called…
Opportunity Cost
6. What is the opportunity cost if you eat at
Wendy’s instead of Burger King?
A Meal at Burger King
7. What does Supply and Demand
determine?
Price
8. What do companies use to motivate
consumers to purchase their products?
Incentives
9. Give an example of an incentive?
Buy One-Get One Free, 50% Off
10. What is the name for the amount of
goods available to be sold?
Supply
13. If supply is high and there are few
buyers, the price will be…
low
14. Using goods and services is called…
Consumption
15. Why is the price of gasoline so high?
Low Supply, High Demand
16. What two things does competition do?
Better Quality, Lower Prices
17. Competitors offer similar products.
What might determine which one you would
buy?
The Price and Quality
18. Does competition give consumers more or
less choices?
More
19. Individuals invest money into businesses
in hopes of making a …
Profit
20. Earnings minus expenses…
Equals Profit
21. What determines a country's economy?
Government Involvement
22. Individuals, business, & the government
share in decisions in this type of economy.
Mixed Economy
23. What type of economy uses central
planning?
Command Economy
24. What type of economy do people do the
same type of jobs as their parents and
grandparents?
Traditional Economy
25. Who controls everything in a command
economy?
Government
26. Profit, private property, and individual
choice are part of which economy?
Free Market and Mixed Economy
27. Economy with very little government
influence?
Free Market Economy
31. What type of economy is called
capitalism and allows individuals to invest
capital to make a profit?
Free Market Economy
32. What two economies does the buyer
have the most power?
Free Market and Mixed Economy
33. What economy does the consumer have
the least choice?
Command Economy
34. Which economy does the government
interfere the least?
Free Market Economy
35. Who plays less of a role in a mixed
economy than in a command economy?
Government
36. What type of economy is the most
common?
Mixed Economy
37. Who makes economic decisions in the
United States?
Businesses, Individuals, and Government
28. What type of economy is based on
customs and traditions?
Traditional Economy
38. What is the power of the buyer called?
Consumer Sovereignty
29. What type of economy has the most
government control?
Command Economy
39. True or False: The government has total
control over the United States economy.
FALSE
30. What produces lower prices and better
quality in a mixed economy?
Competition
40. What word appears in all 3 basic
questions of ECONOMICS?
Produced