Economics Vocabulary_Section 1 & 2

Goods are (a)   that can be produced, bought and sold.

Services are (a)   that can be provided by firms and paid for by customers.

Basic economics problem is how best to _________________________________.

• allocate limited resources to satisfy limited needs and wants

• allocate unlimited resources to satisfy unlimited needs and wants

• allocate limited resources to satisfy unlimited needs and wants

• allocate unlimited resources to satisfy limited needs and wants

Who are the economics agents?

• households

• public sector

• businesses

• individuals

Nationalisation is the purchase of private sector assets by the (a)   .

(a)   is the transfer of ownership of assets from the public sector to the private sector.

(a)   happens when the government sets a price above the market equilibrium price.

The lowest possible price set by the government that producers are allowed to charge consumers for the good/service produced/provided.

• maximum price

• price ceiling

• minimum price

• discounted price

A maximum price occurs when the government sets a price ______________ the market equilibrium price.

• below

• above

• same

(a)   are goods and services which when consumed caused negative spillover effects in an economy.