Core Concept 5

Question 1

What is the study of how people meet their wants and needs?

Answer 1

economics

Question 2

What is a limited supply of resources to meet needs?

Answer 2

scarcity

Question 3

What is the cost of what you have to give up?

Answer 3

opportunity cost

Question 4

What is the desire for a certain good or service?

Answer 4

demand

Question 5

What is the amount of goods or services available for use?

Answer 5

supply

Question 6

Who are people or businesses that make and sell products?

Answer 6

producers

Question 7

Who are people or businesses that buy, or consume, products?

Answer 7

consumers

Question 8

What is a factor that encourages people to act a certain way?

Answer 8

incentive

Question 9

What is an organized way for producers and consumers to trade goods and services?

Answer 9

market

Question 10

What is the money a company has left after subtracting the cost of doing business?

Answer 10

profit

Question 11

What is the money earned by selling goods and services?

Answer 11

revenue

Question 12

What is the act of concentrating on a limited number of goods or activities?

Answer 12

specialization

Question 13

What is the struggle among producers for consumers’ money?

Answer 13

competition

Question 14

What is the general increase in prices over time?

Answer 14

inflation

Question 15

What is a decline in economic growth for 6 months or more?

Answer 15

recession

Question 16

Which type of economy combines the other types (traditional, market, and command) and is most common?

Answer 16

mixed economy

Question 17

A _____?_____ economy is an economy in which the central government makes all the economic decisions.

Answer 17

command economy

Question 18

A _____?_____ economy is an economy in which individual consumers and producers make economic decisions.

Answer 18

market economy

Question 19

A _____?_____ economy is an economy in which people make economic decisions based on their customs and habits.

Answer 19

traditional economy

Question 20

What is economic growth or increase in living standards?

Answer 20

development

Question 21

What is a country with a strong economy and high standard of living?

Answer 21

developed country

Question 22

What is a country with less-productive economies and lower standards of living?

Answer 22

developing country

Question 23

What is the total value of all goods and services produced in a country in a year?

Answer 23

gross domestic product (GDP)

Question 24

What is the amount of goods and services and services produced given the amount of resources used?

Answer 24

productivity

Question 25

What is the practical application of knowledge to accomplish a task?

Answer 25

technology

Question 26

What is the exchange of goods and services in a market?

Answer 26

trade

Question 27

What are goods and services produced within a country and sold outside the country’s borders?

Answer 27

exports

Question 28

What are goods and services sold in a country that are produced in other countries?

Answer 28

imports

Question 29

What is a tax on imports of exports?

Answer 29

tariff

Question 30

What is a government policy or restriction that limits international trade?

Answer 30

trade barrier

Question 31

What is the removal of trade barriers?

Answer 31

free trade

Question 32

What is a plan that shows income and expenses over a period of time?

Answer 32

budget

Question 33

What is the act of setting aside money for future use?

Answer 33

saving

Question 34

What is the price paid for borrowing money?

Answer 34

interest

Question 35

What is an arrangement in which a buyer can borrow to purchase something and pay for it over time?

Answer 35

credit

Question 36

What is the act of using money in hopes of making a future profit?

Answer 36

investing

Question 37

What is a share of ownership in company?

Answer 37

stock

Question 38

What is a certificate issued by a company or government promising to pay back borrowed money with interest?

Answer 38

bond