2-2 economics study 3

Q1: The study of how households and firms make decisions and how they interact in markets

• Microeconomics

• Macroeconomics

Q7: Producers offer more of a good as its price increases and less as its price falls.

• Law of Supply

• Law of Demand

Q8: Consumers buy more of a good when its price decreases and less when its price increases.

• Law of Supply

• Law of Demand

Q13: The price at which the quantity demanded equals the quantity supplied.

• Equilibrium Price

• Price Floor

• Price Ceiling

• Surplus

• Shortage

Q15: A situation in which quantity supplied is greater than quantity demanded.

• Equilibrium Price

• Price Floor

• Price Ceiling

• Surplus

• Shortage

Q17: A situation in which quantity demanded is greater than quantity supplied.

• Equilibrium Price

• Price Floor

• Price Ceiling

• Surplus

• Shortage

A person who comes up with a product or service, or a better way to produce one.

• entrepreneur

• human capital

• capital good

• natural resource

An economic system that relies on the government to make all economic decisions

• traditional economy

• market economy

• mixed economy

• command economy

Focusing on a narrow range of products/services that can be produced most efficiently and cost-effectively.

• subsistence

• specialization

• scarcity

• bartering

A production of the Earth (gift of nature) that people use to meet their needs.

• Resource

• Capital Resource

• Good

• Natural Resource