Basic Economics

In an economy what three things must take place?

• Production, Relocation, Consumption
• Production, Distribution, and Consumption
• Production, Distribution, and Labeling

____________ are the products made in an economy. 

• Goods
• Services
• Consumption

______________________ are provided to you by a company. 

• Consumption
• Goods
• Services

____________________ is the amount of a good that a company has. 

• Supply
• Demand
• Good

__________________ is the willingness and desire of a peson to buy a good. 

• Supply
• Service
• Demand

If the supply decreases and the demand increases then the price will ___________________. 

• Decrease
• Increase
• Stay the same

If the supply increases, but the demand decreases, then the price will _______________. 

• Decrease
• Increase
• Stay the same 

Who determines the price of a good?

• The consumer
• The producer
• The distributor 

If the demand of a good and supply stays the same the price will _______

• Decrease
• Stay the same
• Increase

When a company has more supply than demand this is known as a _______________. 

• Equilibrium 
• Shortage
• Surplus