Business Fundamentals CPAS Review 2

What are the characteristics of a traditional economic system?

• Relies on government

• Driven by consumers

• built upon traditions, customs, and beliefs

What is a Tariff?

• A tax on imported and exported goods

• A price marked on goods

• Profit made from manufactured goods

For the law of demand, as price rises, what happens to quantity demanded?

• it goes up
• it goes down
• it stays the same
• it is not effected

For the law of supply, as price rises, what happens to quantity supplied?

• it goes up
• it goes down
• it stays the same
• it is not effected

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

• Equilibrium 
• Shortage
• Surplus 

The desire to own something and the ability to afford it

• supply

• demand

• deficit

• surplus

This occurs when you feel like you have LESS money when the price of a good RISES

• Substitution Effect

• Income Effect

• Demand Effect

• Inflation Effect

A period of economic slowdown that last six months or less

• Surplus

• Deficit

• Recession

• Depression

The condition of being successful or thriving or being at your peak in a business

• Expansion

• Recovery

• Depression

• Prosperity

A table that lists the quantity of a good that a single person will buy at each price in a market.

• demand schedule
• market demand schedule
• elasticity chart
• supply and demand graph