Economics Vocabulary Quiz II

What is the measure of how well people live?

• Standard of living

• Law of Supply

• Economic Growth

• Trade-offs

What principle states that suppliers will offer more for sale at high prices and less at lower prices?

• Law of Demand

• Law of Supply

• Opportunity Cost

• Production

What does the Law of Demand state?

• The quantity demanded varies directly with its price

• The quantity demanded of a good or service varies inversely with its price

• Suppliers will offer more at high prices

• The process of creating goods and services

What are the tools, equipment, machinery, and factories used in the production of goods and services called?

• Labor

• Capital

• Entrepreneurs

• Trade-offs

Who are people with all of their abilities, efforts, and skills in the production process?

• Entrepreneurs

• Labor

• Capital

• Production

What is the process of creating goods and services?

• Production

• Economic Growth

• Trade-offs

• Law of Supply

What are the resources required to produce things we would like to have?

• Gross Domestic Product

• Factors of Production

• Opportunity Cost

• Standard of living

Who is a risk-taking individual in search of profits who does something new with existing resources?

• Labor

• Entrepreneur

• Capital

• Trade-offs

What is the dollar value of all final goods and services produced within a country's borders in a 12-month period?

• Economic Growth

• Gross Domestic Product

• Standard of living

• Law of Demand

What occurs when a nation's total output of goods and services increases over time?

• Economic Growth

• Trade-offs

• Law of Supply

• Opportunity Cost