Semester Exam

The principle that consumers tend to buy less of a good or service when its price increases, all else held equal, is called

• a.  the law of supply
• a.  the law of demand
• a.  the law of increasing cost
• a.  the law of maximum satisfaction

Based on the belief that most people make logical, rational decisions with their money.

• Traditional Economics

• Behavioral Economics

• Personal Economics

• Cognitive Bias.

Based on the belief that because people are easily influenced by emotions and biases, they are more likely to make unwise and irrational decisions with their money.

• Traditional Economics

• Behavioral Economics

• Personal Economics

• Cognitive Bias

a bank account against which the depositor can drawn checks payable on demand

• checking

• savings

• revenue

• credit

economic system is based on a high degree of government involvement and is based on the ideas of collectivism

• command

• free market

• mixed

• traditional

plastic card used to make purchases now and pay for them later

• debit

• credit

• taxes

• checking

the study of how people use their resources

• economics

• history

• taxes

• revenue

what one gives up to get something

• debit

• credit

• opportunity cost

• scarcity

income earned

• revenue

• opportunity cost

• credit

• savings

Which economics term describes the physical things that are bought and sold in the economy?

• Production

• Goods

• Services

• Consumption