Mrs. Sceviour's Economics Class Second Exam Review

Front

Anywhere sellers offer goods and services and buyers purchase them.

Back

market

Front

The total of all goods and services that all households, companies and the government are willing and able to buy at any price in a given period of time

Back

aggregate demand

Front

As the price for a product or service increases, what happens to production?

Back

law of supply

Front

When the price of a good or service rises, demand falls.

Back

law of demand

Front

The effects from supply and demand activity that affect people who are NOT the actual buyers and sellers in a transaction.

Back

externalities

Front

Money that has value NOT based on its relation to a commodity, but by a nation's government declaring that its money is legal tender.

Back

fiat currency

Front

The price of borrowing money.

Back

interest

Front

A general, across-the-board increase in prices throughout the economy.

Back

inflation

Front

Concentrating on one kind of work.

Back

specialization

Front

A tax placed on goods that businesses import into a country.

Back

import tariff