Review: 2nd Quarterly

Something we pay for that we can touch

• goods
• services

Availability of resources answers the questions of (hint: select 2 choices)

• What to produce?

• Why to produce?

• How to produce?

• For whom to produce?

How does a country that specializes get goods and services they want but cannot produce?

• trade

• gather

• barter

• migrate

What is Supply?

• The number of items ready for sale

• How many people want to buy it

What is demand?

• The number of items ready for sale

• How many people want to buy it

What is a service?

• Any item that can be bought or sold

• Any action that one person or group does for another in exchange for payment

What is an export?

• A product that people in one country sell to people in another country

• A product that people in one country buy from people in another country

What is an import?

• A product that people in one country sell to people in another country

• A product that people in one country buy from people in another country

There is only one gas station on a stretch of highway. Then two more gas stations open next to the first. Demand for gas does not change during this time. What will happen to the price of gas on this stretch of highway and why?

• The price of gas will decrease because there is more competition among businesses.
• The price of gas will decrease because there is less competition among businesses.
• The price of gas will increase because there is more competition among businesses.
• The price of gas will increase because there is less competition among businesses.

Which of the following could cause the price for automobiles to decrease?

• The local factory gives a big raise to its employees.
• None of the choices
• A brand new automobile dealership opens in town.
• The price of gasoline falls.