Economics Test-Multiple Choice and 2 Short AnswersCentral Problem of Economics-scarcityComparing free enterprise and planned economy systems-Free Enterprise- Business governed by the laws of supply and demand, not restrained bygovernment interfering, regulation or subsidy-Planned Economy System-economy system in which the state directs the economy,central government controls industry such that it makes major decisions regarding theproduction and distribution of goods and services.Scarcity-Lack of enough stuff to satisfy all of our wants and desiresOpportunity costs-The most desired goods and services that are forgone in order to obtain something elseEx. if you go spend 20$ for movie tickets, then that’s 20$ u can’t use for clothesCapital-Capital, used in two terms $ and as equipment, is there new tech.? How much?Entrepreneurship-Entrepreneurship, how smart are we? What smart investments have we made? Is this thesmartest industry to be in?Find a way to make the big business a bigger profit.