Chapter 1- Key Terms

Question 1

Demand

Answer 1

Quantity the consumer is willing to buy

Question 2

Economic decision-making

Answer 2

Choosing which needs and wants will be satisfied

Question 3

Economic resources

Answer 3

Things available to produce services and goods

Question 4

Command economy

Answer 4

Controlled by the government

Question 5

Economic system

Answer 5

To answer the 3 questions

Question 6

3 questions every society must know

Answer 6

1.Who consumes the goods and
services
2. What goods and services should be produced
3. How should goods and services be produced

Question 7

Consumer

Answer 7

A person who purchases goods and services

Question 8

Capitalism

Answer 8

Private ownership of economic resources by individuals

Question 9

Goods

Answer 9

Products you can see/touch

Question 10

Market economy

Answer 10

Owned/controlled by the people

Question 11

Needs

Answer 11

Things required to live

Question 13

Mixed economy

Answer 13

Market economy + Command economy

Question 14

Opportunity cost

Answer 14

The value of the next best alternative

Question 15

Producers

Answer 15

People who invent or supply the goods/services

Question 16

Scarcity

Answer 16

Not having enough recourses to satisfy needs and wants

Question 17

Services

Answer 17

Activities provided for satisfaction

Question 18

Traditional economy

Answer 18

The way it has always been

Question 19

Wants

Answer 19

To improve quality of life, to make life better.

Question 20

Market price

Answer 20

Where supply and demand are equal

Question 21

Trade-off

Answer 21

Give up something for something else

Question 23

Supply

Answer 23

Quantity of a good/service

Question 24

Bond

Answer 24

Certificate representing a promise to pay a definite amount of money at a stated interest rate on a specified due date.

Question 25

Budget deficit

Answer 25

financial situation that occurs when the government spends more than it takes in.

Question 26

Budget Surplus

Answer 26

when the government spends less than it takes in, usually leads to decreased taxes and more money is spent on programs.

Question 27

Business cycle

Answer 27

Movement of the economy from one condition to another

Prosperity -> Recession -> Depression -> Recovery

Question 28

Capital Project

Answer 28

spending money for the city

Question 29

Deflation

Answer 29

The decrease in general prices.

Question 30

Depression

Answer 30

Unemployment, rates low, weak sales, business failure

Question 31

GDP per capita

Answer 31

The out put per person

Question 32

GDP (gross domestic product)

Answer 32

Total value of all final goods and services in one year in a country

Question 33

Inflation

Answer 33

The increase of general prices

Question 34

National Debt

Answer 34

The amount owed by the federal government

Question 35

Personal Income

Answer 35

Salaries, wages, investments and government payments to one person.

Question 36

Price Index

Answer 36

Compares prices from one year to a previous earlier base year

Question 37

Productivity

Answer 37

Production out put and the unit of input a worker puts in.

Question 38

Prosperity

Answer 38

the state of flourishing, wealth, and the standard of living is raised

Question 39

Recession

Answer 39

a period of temporary economic decline during which trade and industrial activity are reduced, generally identified by a fall in GDP

Question 40

Recovery

Answer 40

employment starts to raise, demand goes up, out put is increased.

Question 41

Retail sales

Answer 41

monthly economic indicator

Question 42

Stock

Answer 42

the capital raised by a business or corporation through the issue and subscription of shares.

Question 43

Unemployment Rate

Answer 43

rate of how many people are unemployed to those who are employed.