GCM EPF Unit 5-8 Vocabulary Assessment

What is scarcity in economic terms?

• Having unlimited resources to meet unlimited wants
• The basic economic problem of having unlimited wants but limited resources
• When resources are abundant and readily available
• A situation where supply exceeds demand

What is an opportunity cost?

• The monetary cost of a purchase
• The total cost of production
• The next best alternative given up when making a choice
• The cost of labor in production

What is elasticity of demand?

• The physical flexibility of a product
• The responsiveness of quantity demanded to a change in price
• The total demand for a product
• The speed at which products sell

What is a price ceiling?

• The highest price allowed by law for a good or service
• The natural maximum price in a market
• The price where supply equals demand
• The price that maximizes profit

What is human capital?

• Money invested in machinery
• Physical assets owned by a company
• Knowledge, skills, and experience that make a worker productive
• The number of workers in a company

What is net pay?

• The total amount earned before deductions
• The amount remaining after all deductions
• The base salary without overtime
• The bonus payment received

What are employee incentives?

• Punishments for poor performance
• Required work hours
• Rewards or benefits that motivate better performance
• Basic salary requirements

What is supply and demand?

• Government regulation of prices
• The relationship between available goods and consumer desire
• The total amount of goods produced
• The total amount of goods consumed

What best describes trade-offs?

• Exchanging goods between countries
• Giving up one thing to get another
• Selling products at a loss
• Buying products in bulk

What determines equilibrium price?

• Government regulation only
• Producer decisions only
• Consumer preferences only
• The interaction of supply and demand