Economic Concepts

Gross Domestic Product is....

• The sum total of the value of all the goods and services produced in a nation

• The total amount of resources a company has

• The amount of money a company owes

• The amount of debt a company has

What are goods?

• The struggle among producers for the dollar of consumers

• A general increase in prices and fall in the purchasing value of money

• A situation in which unlimited wants exceed the limited resources available to fulfill those wants

• Actions or activities that one person performs for another

• Items purchased to satisfy needs and wants

What are services?

• The struggle among producers for the dollars of consumers

• A general increase in prices and fall in the purchasing value of money

• A situation in which unlimited wants exceed the limited resources available to fulfill those wants

• Actions or activities that one person performs for another

• Items purchased to satisfy needs and wants

What is inflation?

• The fall in assets and consumer prices over time

• The increase in taxes over time

• The increase in prices and the fall of the purchasing power of money

What is supply and demand?

• The amount of raw materials available found in nature

• The amount of labor resources required to produce a product or service

• The amount of a good or service available and the desire for the consumers to buy it

• None of the above

What is scarcity?

• Limited or short supply of a good or service

• Unlimited supply of a good or service

• Limited supply of a good but unlimited supply of a service.

When the demand for a product increases, prices generally...

• decrease

• increase

• stay the same

When supply increases, prices generally...

• decrease

• increase

• stay the same

What is economic competition?

• The rivalry among businesses to sell goods to consumers and make the greatest profits.

• total revenue minus total cost

• A person who purchases goods and services for personal use

What is profit?

• The rivalry among businesses to sell goods to consumers and make the greatest profits.

• total revenue minus total cost

• A person who purchases goods and services for personal use