Economics Handbook Review

A country's system for making, distributing, and using goods and services is called

• import

• economy

• export

• competition

The fee paid on borrowed money is called

• interest

• debt

• opportunity cost

• scarcity

A free market economy means that ordinary people, not the _________________, own most businesses.

• governor

• country

• school

• government

When demand goes up, prices go ________.

• up

• down

What is one way a store owner can attract more customers?

• raise prices

• lower prices

• stay closed

• sell all items for double the price

In the economy, when two or more companies try to outdo each other by selling more products and/or services is called _____________________.

• a race

• competition

• demand

• services

When supply goes down, prices go ________________.

• up

• down

________________ are items offered for sale.

• services

• scarcity

• goods

• profit

Goods made in the United States and sent to another country to be sold are called __________________________.

• interest

• competition

• imports

• exports

___________________ are jobs that someone performs for the benefit of another person.

• opportunity cost

• goods

• services

• economy