Economic Terms Review

What is the term for when a company's expenses exceed its income?

• a) Profit

• b) Loss

• c) Taxes

• d) Demand

Which of the following best describes "profit"?

• a) Money paid to the government

• b) The cost of producing goods

• c) Positive gain after subtracting expenses

• d) The total amount of sales

What do governments use tax money for?

• a) To increase company profits

• b) To pay for public goods and services

• c) To reduce consumer demand

• d) To increase scarcity

In economic terms, what is a "good"?

• a) A type of service

• b) A form of currency

• c) Something intangible

• d) A physical product or merchandise

What does "supply" refer to in economics?

• a) The desire for a product

• b) The amount available for use

• c) The cost of production

• d) The quality of a product

What term describes how much buyers want a product or service?

• a) Supply

• b) Barter

• c) Demand

• d) Shortage

What is the practice of exchanging goods or services without using money called?

• a) Taxes

• b) Barter

• c) Profit

• d) Specialization

When there is a limited amount of something available, it is called:

• a) Demand

• b) Supply

• c) Scarcity

• d) Interdependence

What term describes the work done for others?

• a) Good

• b) Service

• c) Barter

• d) Tax

What is the study of making, buying, and selling goods and services?

• a) Sociology

• b) Psychology

• c) Economics

• d) Anthropology