Economics Vocabulary Quiz

What is opportunity cost?

• The cost of the next best alternative use of money, time, or resources when one choice is made rather than another

• The concept that people may decide what and when they want to buy and sell

• The development of skills in a specific kind of work

• Using money to purchase goods and services

What are price incentives?

• The cost of the next best alternative use of money, time, or resources when one choice is made rather than another

• When prices affect the decisions people make

• The development of skills in a specific kind of work

• Using money to purchase goods and services

What is specialization?

• The cost of the next best alternative use of money, time, or resources when one choice is made rather than another

• When prices affect the decisions people make

• The development of skills in a specific kind of work

• Using money to purchase goods and services

What is voluntary exchange?

• The cost of the next best alternative use of money, time, or resources when one choice is made rather than another

• When prices affect the decisions people make

• The development of skills in a specific kind of work

• The concept that people may decide what and when they want to buy and sell

What is the definition of spending?

• The cost of the next best alternative use of money, time, or resources when one choice is made rather than another

• When prices affect the decisions people make

• Using money to purchase goods and services

• Setting aside money for future use

What is saving?

• using money to purchase goods and services

• setting aside money for future use

• incoming money

• a plan for making and spending money

What is a budget?

• when a business's expenses are more than its revenues

• an individual or business that purchases another company's goods or services

• a plan for making and spending money

• cost of the next best alternative use of money, time, or resources when one choice is made rather than another

What is productivity?

• the quantity of goods and services produced from each unit of labor input

• an individual or business that purchases another company's goods or services

• setting aside money for future use

• when prices affect the decisions people make

What is advertising?

• an expense; the amount needed to be paid out

• to promote goods or services

• development of skills in a specific kind of work

• total revenue minus total cost

What is trade?

• the action of buying and selling goods and services

• when a business's expenses are more than its revenues

• when prices affect the decisions people make

• setting aside money for future use