Economics Final

What is the study of how people seek to satisfy their needs and wants by making choices?

• Anthropology

• Sociology

• Psychology

• Economics

What term describes items purchased to satisfy needs and wants?

• Services

• Goods

• Commodities

• Assets

What is a situation in which unlimited wants exceed the limited resources available?

• Surplus

• Scarcity

• Abundance

• Deficit

Who is a person that organizes, manages, and takes on the risks of a business?

• Manager

• Employee

• Entrepreneur

• Investor

What is the most desirable alternative given up as the result of a decision?

• Trade-off

• Opportunity cost

• Sunk cost

• Marginal cost

What is the monetary gain made in a transaction called?

• Revenue

• Profit

• Income

• Earnings

What term describes using fewer resources than an economy is capable of using?

• Optimization

• Maximization

• Overutilization

• Underutilization

What is the term for the amount of goods available?

• Supply

• Demand

• Stock

• Inventory

What describes consumer willingness and ability to buy products?

• Consumption

• Market

• Supply

• Demand

What term do economists use to describe the self-regulating nature of the marketplace?

• Price mechanism

• Supply and demand

• Market equilibrium

• Invisible hand