Economics & Pers Finance Test 2

Question 1

Economic System

Answer 1

an organized way of providing for the wants and needs of their people

Question 2

Social Security

Answer 2

a federal program of disability and retirement benefits that covers most working people

Question 3

Inflation

Answer 3

a rise in the general level of prices

Question 4

Fixed Income

Answer 4

an income that does not increase even though prices go up

Question 5

Voluntary Exchange

Answer 5

the act of buyers/sellers freely and willingly engaging in market transactions

Question 6

Private Property

Answer 6

The privilege that entitles people to own and control their own possessions. This can include both your items and your ideas

Question 7

Profit Motive

Answer 7

Profit is the extent to which person or organizations are better off at the end of a period than they were at the beginning

Question 8

Mixed Economy

Answer 8

the people are free to make choices with SOME government intervention and regulation

Question 9

Deflation

Answer 9

a decrease in the general level of prices

Question 10

Consumer Sovereignty

Answer 10

You are the ruler of the market, in control, “The consumer is always right”