Lesson 2 Exploring Economy

Question 1

Capital

Answer 1

Money and goods used to help people make or do things

Question 2

Entrepreneurship

Answer 2

The act of running a business and taking on risks of that business

Question 3

Supply

Answer 3

The amount of a good or service that a producer wants to sell

Question 4

Demand

Answer 4

The amount of a good or service a consumer wants to buy

Question 5

Scarcity

Answer 5

Lack of a resource

Question 6

Opportunity cost

Answer 6

What a person gives up when they choose to make or buy a product

Question 7

Traditional economy

Answer 7

An economic system in which custom decides what people do when they choose to make or buy a product

Question 8

Command economy

Answer 8

An economic system in which a central government decides what goods will be made

Question 9

Recession

Answer 9

A period of slow economic growth or decline

Question 10

Inflation

Answer 10

A rise in prices and a drop in the value of money

Question 11

Exports

Answer 11

Goods sent from one country to another in trade

Question 12

Imports

Answer 12

Goods brought from one country to another in trade

Question 13

Barter

Answer 13

To trade by exchanging one good or service for anotherhrghe9t8g