Economic Concepts Flashcard

Scarcity occurs because resources are __, but human wants are unlimited.

In the circular flow model, households are the __ of resources.

Economic freedom allows individuals to make their own __ decisions.

A __ is a legal maximum price set by the government.

When quantity demanded exceeds quantity supplied, it is known as a __.

What is the primary reason scarcity exists in economies?

In the circular flow model, what role do firms play?

Which of the following is a characteristic of a market economy? Government ownership of resources, Centralized decision-making, Economic freedom, Fixed prices by the government

What happens when a price ceiling is set below the equilibrium price?

Which factor does not directly affect supply in the market? Options: Production costs, Technology, Number of sellers