Economics Vocabulary Check 1

An action that a person does for someone else.

• Good

• Price

• Service

• Supply

What is a consumer?

• A person who buys goods or services

• Produce a good or service

• How much it costs

What is a producer?

• An object people want

• Natural, human, and capital resources used to produce goods.

• Someone who makes a good or service.

What type of economy does the United States have?

• Market Economy

• Command Economy

• Mixed Economy

What is a benefit to consumers in the economy?

• Taxes

• Scarcity

• Producer Competition

• C

The law of demand states higher prices =

• Producers supplies LESS of a good

• Producers supplies MORE of a good

• Consumer demand LESS of a good

• Consumers demand MORE of a good

The law of supply states that higher prices =

• Producers supplies MORE of a good

• Consumers demand MORE of a good

• Producers supplies LESS of a good

• Consumers demand LESS of a good

Price is impacted by which factor

• COMPETITION

• CONSUMERS CHOICE

• SUPPLY/DEMAND

• ALL OF THE ABOVE

Scarcity causes prices to:

• Increase

• Decrease

• Stay the same

A surplus causes prices to:

• Increase

• Decrease

• Stay the same