Understanding Economic Terms and Concepts

What is the term for the measure of the rate at which the average price level of selected goods and services in the economy increases over a period of time?

• Deflation

• Inflation

• Price Stability

• Liquidity

Which index measures the change in prices over time?

• Standard of Living

• Customer Price Index (CPI)

• Target Inflation Rate

• Financial Market

What is the term for the rate at which the price of goods and services decreases over time?

• Inflation

• Deflation

• Price Controls

• Volatility

What is the term for the marketplace of goods and services?

• Financial Market

• Domestic Trade

• International Trade

• Call Markets

What is the term for the ease with which an asset can be converted into ready cash without affecting its market price?

• Efficiency

• Liquidity

• Volatility

• Eurocurrency

What is the term for a basic good that is interchangeable with other goods of the same type?

• Commodity

• Import

• Export

• Cyclical Stock

What is the term for goods and services purchased from other countries?

• Exports

• Imports

• Domestic Trade

• International Trade

What is the term for the process by which people draw inferences about others based on their knowledge of the categories to which others belong?

• Ethnocentrism

• Stereotyping

• Price Controls

• Efficiency

What is the term for government-imposed limits on the prices that producers may charge in the market?

• Price Stability

• Price Controls

• Target Inflation Rate

• Buy Price

What is the term for markets when prices are rising and more products are being purchased?

• Bear Market

• Bull Market

• Continuous Markets

• Call Markets