Chapter 5 Economics

The study of how people meet their wants and needs.

• scarcity

• economics

• supply

• demand

Having a limited quantity of resources to meet unlimited wants.

• scarcity

• economics

• supply

• demand

Making choices involves?

• incentives

• supply

• demand

• opportunity cost

People or businesses that make and sell products.

• consumer

• producer

• market price

• market

An organized way for producers and consumers to trade goods and services.

• competition

• economic trade

• specialization

• maket

Market price is determined by?

• competition

• inflation

• supply and demand

• consumer and producer

A decline in economic growth for six or more months in a row is known as?

• deficit

• inflation

• recession

• lost capital

The money a company has left after subtracting the cost of doing business.

• revenue

• profit

• budget

• investment

How might a change in the price of one good or service lead to changes in a prices of other goods or services?

• If the price of one good of service decreases so will the price of the competitors product.

• If they sell more products, they usually increase production.

• The three main factors of production are land, labor, and capital.

• If the price of a product increases, companies will make more of it.

Does a person always need money to obtain goods and services?

• I don't know

• No, people can compete for what they want.

• No, people can barter for goods and services.

• Yes, money is the only way to trade.