Week11 Vocab

Question 1

Capitalism

Answer 1

A system in which private citizens own most, if not all, of the production and decide how to use them within limits

Question 2

Subsidy

Answer 2

A government payment to an individual, business or group in exchange for certain actions

Question 3

Demand

Answer 3

The desire, willingness and ability to buy a good or service

Question 4

Substitute

Answer 4

A competing product that consumers can use in place of another

Question 5

Price ceiling

Answer 5

Maximum price that can be charged for goods and services set by the government

Question 6

Profit

Answer 6

The money a business receives for its products or services over and above its cost

Question 7

Utility

Answer 7

The amount of satisfaction one gets from a good service

Question 8

Laissez-faire

Answer 8

Economic system where government should not interfere in the market place

Question 9

Supply

Answer 9

The amount of goods and services that producers are able and willing to sell at various prices during a specified time period

Question 10

Productivity

Answer 10

The degree to which resources are being used efficiently to produce goods and services