Econ Vocab Test Review

Which of the following is an example of Utility?

¿Cuál de los siguientes es un ejemplo de utilidad?

• Paying for a service
• Buying a new car
• Enjoyment from eating a meal
• Investing in stocks

Define Substitute economically

• A substitute is a type of financial investment.
• A substitute is a good that cannot be replaced in consumption.
• A substitute is a service that only benefits one party.
• A substitute is a good or service that can replace another in consumption.

What is a command economy?

¿Qué es una economía dirigida?

• A command economy is an economic system where the government centrally plans and controls all economic activities.
• An economic system where supply and demand dictate production.
• A market-driven economy with minimal government intervention.
• A type of economy that relies solely on barter and trade.

What is a traditional economy?

¿Qué es una economía tradicional?

• A traditional economy is an economic system that prioritizes government control over all resources.
• A traditional economy is characterized by a focus on global trade and investment.
• A traditional economy relies solely on advanced technology and industrial production.
• A traditional economy is an economic system based on customs and traditions, and prioritizes survival.

Define Demand

• Demand is the willingness and ability of consumers to purchase a good or service at different prices.
• Demand is the amount of money consumers are willing to spend on a product.
• Demand refers to the supply of goods by producers.
• Demand is the total quantity of goods available in the market.

Define Fiat Money

• Fiat money is currency that has value by government decree and is not backed by a physical commodity.
• Fiat money is backed by gold reserves.
• Fiat money is a type of cryptocurrency.
• Fiat money is only used in international trade.

Define Representative Money

Definir dinero representativo

• A form of barter system
• Representative money is currency that represents a claim on a commodity.
• Currency that has intrinsic value
• A type of digital currency

Define Commodity Money

• Commodity money is only used in barter systems.
• Commodity money is a type of digital currency.
• Commodity money is money that has intrinsic value, derived from the commodity it is made of. Often used in barter or trade

• Commodity money has no physical form and exists only as a concept.

Which is an example of the Income Effect?

¿Cuál es un ejemplo del efecto renta?

• If the price of apples rises, a consumer buys oranges

• A consumer buys more apples regardless of the price change.
• If the price of apples drops, a consumer buys the same amount of apples as before.
• If the price of apples drops, a consumer buys more apples because they feel richer.

Define Supply

• Supply refers to the demand for a product or service.
• Supply is the price consumers are willing to pay for a product.
• Supply is the total number of consumers interested in a product.
• Supply is the total amount of a product or service available to consumers.