Watson Economy Vocab

Question 1

economy

Answer 1

the wealth and resources of a country or region, especially in producing and consuming goods and services.

Question 2

goods

Answer 2

merchandise that you can hold

Question 3

services

Answer 3

the action of helping or doing work for someone.

Question 4

market economy

Answer 4

an economic system in which production and prices are determined by unrestricted competition between privately owned businesses.

Question 5

command economy

Answer 5

a system in which a central governmental authority sets permitted levels of production, as well as the terms of distribution and pricing

Question 6

profit

Answer 6

a financial gain, especially the difference between the amount earned and the amount spent in buying, operating, or producing something.

Question 7

consumer

Answer 7

a person who purchases goods and services for personal use.

Question 8

producer

Answer 8

a person company or country that makes, grows, or supplies

Question 9

incentive

Answer 9

a thing that motivates or encourages one to do something.

Question 10

innovation

Answer 10

a new method, idea, product, etc.

Question 11

opportunity cost

Answer 11

the loss of potential gain from other alternatives when one alternative is chosen.

Question 12

competition

Answer 12

strive to gain or win something by defeating or establishing superiority over others who are trying to do the same.

Question 13

supply

Answer 13

the amount of a good or service offered for sale.

Question 14

demand

Answer 14

the desire of purchasers, consumers, clients, employers, etc., for a particular commodity, service, or other item.

Question 15

market forces

Answer 15

the economic factors that influence the price and quantity of goods and services in a market.

Question 16

private

Answer 16

provided or owned by an individual or an independent, commercial company rather than by the government.

Question 17

debt

Answer 17

owing money

Question 18

asset

Answer 18

a useful or valuable thing, person, or quality

Question 19

budget

Answer 19

an estimate of income for a set period.

Question 20

federal budget

Answer 20

reflects our elected leaders’ decisions on how to tax and spend, to borrow and lend, and to consume and inves

Question 21

trend/pattern

Answer 21

A pattern is a set of data that follows a recognizable form, which analysts then attempt to find in the current data.

Question 22

import

Answer 22

to bring (something, such as merchandise) into a place or country from another country

Question 23

export

Answer 23

goods and services that are produced in one country and sold to buyers in another

Question 24

deficit

Answer 24

occurs when expenses exceed revenues, imports exceed exports, or liabilities exceed assets

Question 25

mandatory spending

Answer 25

spending that is required by law, and is not subject to annual appropriations

Question 26

discretionary spending

Answer 26

the use of money for non-essential expenses

Question 27

securities

Answer 27

a thing deposited or pledged as a guarantee of the fulfillment of an undertaking or the repayment of a loan, to be forfeited in case of default.

Question 28

interest

Answer 28

Money is paid regularly at a particular rate to use money lent or to delay repayment of a debt.

Question 29

surplus

Answer 29

An excess is the amount of something left over when requirements have been met; it is an excess of production or supply over demand.

Question 30

federal government

Answer 30

the United States Government, its legislative, executive, and judicial branches, and the statutes , rules, and regulations enacted by those branches of government