Economics Vocabulary Review

Human activity that provides the goods or services in an economy.

• scarcity

• wages

• labor

• supply

Different quantity of a resource, good, or service that will be purchased at various prices.

• supply

• demand

• scarcity

• surplus

The most important alternative that is given up as the result of a specific economic condition.

• supply

• demand

• scarcity

• opportunity cost

A payment usually of money for labor or services.

• opportunity cost

• income

• wages

• labor

Different quantity of a resource, good, or service offered for sale at various prices.

• supply

• demand

• scarcity

• opportunity cost

The conditions to not have all the goods and services people want.

• supply

• demand

• opportunity cost

• scarcity

A gain usually in money that comes from labor, business, or property.

• income

• wages

• labor

• supply

Which of the following situations will most likely make the price of an item go up?

• The demand for the item is greater than the supply of it.

• The supply of the item is greater than the demand for it.

Which of the following situations will most likely make the price of an item go down?

• The demand for the item is greater than the supply of it.

• The supply of the item is greater than the demand for it.

Caseys and Quik Trip are competitors because they both sell gas. Caseys gas station is selling gas for $2.19 per gallon. Quik Trip has decided to sell their gas for 5 cents less per gallon. How will this change in price affect consumers?

• The demand for Casey's gas will increase.

• The demand for Quik Trip's gas will increase.

• The change in price will not affect consumers.