Economics Vocabulary

A system or place where buyers and sellers interact to exchange goods and services.

• Market

• Store

• Factory

• Retailer

The total quantity of a good or service that consumers are willing and able to buy at different prices in a given period.

• Equilibrium

• Supply

• Demand

• Inflation

Consumers will buy more of a good when its price is lower and less when its price is higher.

• Law of Increasing Opportunity Costs

• Law of Supply

• Law of Diminishing Returns

• Law of Demand

The total amount of a good or service that producers are willing and able to sell at different prices in a given period.

• Supply

• Demand

• Consumption

• Production

The definition of 'Price' is:

• A type of currency.

• A place where goods are sold.

• The quality of being expensive.

• The amount of money expected, required, or given in payment for something.

Price equilibrium refers to the point at which the supply of a product matches its demand. What does this mean?

• The price at which supply equals demand

• The price at which supply exceeds demand

• The price at which demand exceeds supply

• The price at which there is no demand

How is 'Labor' defined in the context of production?

• The machinery and tools used in production

• The physical and mental effort used in the creation of goods and services

• The financial resources used to start and maintain a business

• The land and natural resources used in production

How is 'Capital' defined in the context of production?

• The machinery and tools used in production

• The physical and mental effort used in the creation of goods and services

• The financial resources used to start and maintain a business

• The land and natural resources used in production

Producers offer more of a good or service as its price increases and less as its price falls.

• Law of Diminishing Returns

• Law of Demand

• Law of Supply

• Law of Opportunity Cost

The role of 'Technology' in production is to:

• increase efficiency and productivity

• decrease costs and waste

• improve quality and innovation

• all of the above