chapter 1: economic basics

Question 1

profit formula

Answer 1

revenue-expenses

Question 2

law of demand

Answer 2

when prices decrease, demand increases. when prices increase, demand decreases.

Question 3

law of supply

Answer 3

when prices decrease, supply decrease. when prices increase, supply increase.

Question 4

goods

Answer 4

physical, usable items

Question 5

services

Answer 5

acts of help

Question 6

impact of consumers

Answer 6

consumer purchasing power gives individuals the control to buy the goods and services at the price and location they want. because of competition, consumers have more power and more choice so they can demand changes.

Question 7

law of supply and demand

Answer 7

when prices increase, supply increases, and demand decreases. when prices decrease, supply decreases, and demand increases

Question 8

impact of competition

Answer 8

can cause businesses to change aspects of their goods and services (quality and price) to attract more customers and expand market share

Question 9

decision making

Answer 9

define the decision to be made, identify the alternatives, evaluate the advantages and disadvantages, make the decision, evaluate the decision