Fundamentals of Economics

Select the definition that corresponds to the term below.

Capital

• is how much consumers are willing and able to buy at a certain price.

• is what you give up to get something else.

• the manufactured goods used to produce other goods and services.

• the degree to which demand is affected by price.

Select the definition that corresponds to the term below.

Elastic Demand

• is when the price has little influence on demand

• refers to the ability of individuals to start new business, introduce new products, and improve business processes.

• is how much consumers are willing and able to buy at a certain price.

• is when demand for a product is affected by price.

Select the definition that corresponds to the term below.

Financial Market

• is the supply, demand, and a system of pricing allow people to make the economic decisions through free interaction.

• is how much consumers are willing and able to buy at a certain price.

• is a mechanism that provides the means for purchasing and selling stocks, bonds, commodities, and other financial instruments.

• is the study of the decisions that go into making, distributing , and using foods and services.

Select the definition that corresponds to the term below.

Equilibrium Point

• the price at which consumers and producers agree

• encourages specific behavior and helps to motivate individuals to take specific actions.

• the manufactured goods used to produce other goods and services.

• manage money deposited in their institution.

Select the definition that corresponds to the term below.

Price Floor

• is a minimum price set by the government that can be charged for goods and services.

• is the exchange of products without the use of money.

• requires that people decide which goods and services to use or not use due to limited resources and unlimited wants.

• all three economic questions are answered by cutoms and tradition.

Select the definition that corresponds to the term below.

Price Ceiling

• is what you give up to get something else.

• is how much consumers are willing and able to but at a certain price.

• refers to natural resources that exist and were no created by people.

• is a maximum price set by the government that can be charged for goods and services.

Select the definition that corresponds to the term below.

Labor

• is what you give up to get something else.

• are resources needed to produce goods and services.

• is the work that people do and includes all of their abilities, efforts, and skills.

• the manufactured goods used to produce other goods and services.

Select the definition that corresponds to the term below.

Incentive

• the price at which consumers and producers agree

• encourages specific behavior and helps to motivate individuals to take specific action.

• are resources needed to produce for and services.

• is the study of the decisions that go into making, distributing, and using goods and services.

Select the definition that corresponds to the term below.

Command Economy

• is the study of the decisions that go into making, distributing, and using goods and services.

• is a system in which a central authority controls all economic decisions.

• the manufactured goods used to produce other goods and services.

• is a mechanism that provides the means for purchasing and selling stocks, bonds, commodities, and other financial instruments.

Select the definition that corresponds to the term below.

Scarcity

• all three economic questions are answered by customs and tradition.

• requires that people decide which goods and services to use or not use due to limited resources and unlimited wants.

• is how much consumers are willing and able to buy at a certain price.

• is the work that people do and includes all of their abilities, efforts, and skills.