Economics

What is a want?

• something you have and want to get rid of

• something you would like to have but don't need to live

• something that costs a lot of money

• Something you need to live

A person who uses and buys goods and services

• purchaser

• producer

• consumer

• seller

A person who makes goods or provides a service

• buyer

• purchaser

• producer

• consumer

Which of the following is not a good?

• Clothes
• Food
• Dog Walker
• Toys

Which of the following is not a service?

• Dry Cleaner
• Car Wash
• Clothes
• Babysitter

When a consumer is willing and able to buy a good or service, he or she creates which of the following?

• consumption
• demand
• elasticity
• allocation

What is the basic principle of the law of demand?

• The higher the price, the more people will want the good.
• Everyone has a limited income that they will spend.
• When a good's price is lower, people will buy more of it.
• Services are of interest in the same way that goods are.

What is the basic principle of the law of supply?

• The higher the price, the more people will want to produce the good.
• Everyone has a limited supply that they will make.
• When a good's price is lower, people will produce more of it.
• Services are of interest in the same way that goods are.

Import means

• buying goods from another country
• selling goods to another country
• only making one kind of product

Export means

• buying goods from another country
• selling goods to another country
• only making one kind of product