Eco Unit 2 Vocab.

What is the definition of market?

• C) A type of currency used in ancient times

• A) A place where people go to buy groceries

• B) An arrangement that brings sellers and buyers together for economic transactions

• D) A system for trading stocks and bonds

What is opportunity cost?

• B) The loss of potential gain from other alternatives when one alternative is chosen

• D) The cost of choosing an alternative

• A) The gain from other alternatives when one alternative is chosen

• C) The total cost of all available options

What is equilibrium price?

• D) The price set by the government

• C) The price at which the quantity supplied in the market matches the quantity demanded in the market

• B) The lowest price in the market

• A) The highest price in the market

What is a product?

• D) A type of investment

• C) A type of currency used in ancient times

• B) An article or substance that is manufactured or refined for sale

• A) A service provided by a company

What are incentives?

• A) Punishments for not taking a certain action

• B) Something that makes a person take a certain action

• C) Rewards for not taking a certain action

• D) A type of tax incentive

What is allocation?

• B) The process of distributing goods and services

• A) The process of collecting taxes

• D) The process of setting prices

• C) The process of allocating resources

What is an economic system?

• A) The structure that a society uses to produce and distribute goods and services

• D) The structure that a society uses to set prices

• B) The structure that a society uses to regulate trade

• C) The structure that a society uses to manage its finances

What is an import?

• A) A good or service brought in from another country for sale

• B) A good or service exported to another country for sale

• C) A good or service produced domestically

• D) A good or service that is not traded internationally

What is interest?

• A) The price paid for borrowing money

• B) The price paid for lending money

• C) The price paid for saving money

• D) The price paid for investing money

What is an export?

• A) Goods or services that are sold domestically

• B) Goods or services that are sold to another country

• C) Goods or services that are not traded internationally

• D) Goods or services that are imported from another country