Chapter 2

Question 1

all of the activities related to making and distributing goods and services in a geographic area or country

Answer 1

economy

Question 2

an economy based on the laws of supply and demand

Answer 2

market economy

Question 3

the quantity of goods and services that producers are willing and able to provide

Answer 3

supply

Question 4

the willingness and ability of consumers to buy goods and services

Answer 4

demand

Question 5

the alternating periods of growth and decline in the economy

Answer 5

business cycle

Question 6

the expense paid by students for the instruction at a school

Answer 6

tuition

Question 7

money received from an outside source to help pay for education

Answer 7

financial aid

Question 8

a loan on which the student pays no interest until he or she has graduated or is no longer in school

Answer 8

subsidized student loan

Question 9

a loan that starts charging interest from the time the loan is made

Answer 9

unsubsidized student loan

Question 10

money given to pay for educational expenses that does not have to be repaid

Answer 10

grant

Question 11

a cash allowance awarded to a student to help pay for education

Answer 11

scholarship

Question 12

a set of moral values that people consider acceptable; the study of what is right versus wrong

Answer 12

ethics

Question 13

pay received for hours worked in addition to regular hours

Answer 13

overtime pay