unit 2.3 (quizlet version)

Question 1

interest rates

Answer 1

The cost of borrowing and the reward for saving

Question 2

consumer spending

Answer 2

The value of goods and services bought by consumers over a time period, usually a month or a year

Question 2

unemployment

Answer 2

the number of people without a job

Question 3

production

Answer 3

the process of making a good or service

Question 4

income

Answer 4

the money that an individual or business takes in

Question 5

income inelastic

Answer 5

a change in income has little / no effect on demand

Question 6

income elastic

Answer 6

a change in income has a large impact on demand

Question 7

luxury goods

Answer 7

more people buyas income rises

Question 8

normal good

Answer 8

people buying increases a little as income rises

Question 9

inferior good

Answer 9

less people buy as income rises

Question 10

economic climate

Answer 10

The state of key factors within a country such as the level of goods and services produced and the number of jobs available.

Question 11

strong economic climate

Answer 11

unemployment is low and the economy is growing

Question 12

weak economic climate

Answer 12

unemployment is high and the economy is shrinking