PoBMF - Chapter 2 - Economic Activity Review

Which of the following is largely responsible for the growth of a free enterprise system?

• Government

• GDP

• Profit Motive

• Market Efficiency

The things you wish you could have

• Needs

• Competition

• Wants

• Resources

These can be physically weighed or measured

• Services

• Resources

• Consumer

• Goods

Tasks that people or machines perform; satisfy some of your wants for things you can’t see or touch.

• Competition

• Services

• Profit

• Market research

individual or group that buys products

• customer

• business

• product

• service

Customers who purchase goods or services for their own use

• Business

• customer

• product

• Consumer

says that the price of a product is determined by the relationship of the supply of a product and demand for the product

• law of supply and demand

• economic system

• capital goods

• factors of production

The gradual rise in prices

• savings

• principal

• inflation

• deflation

The money or fee you pay for borrowing money

• deposits

• withdrawls

• capital gains

• Interest

A measurement of the total goods and services produced within a country during a specific time period.

• Bond

• Gross Domestic Product

• Consumer Price Index

• Productivity