Vocab pg. 29 and 49

Question 1

the private ownership of economic resources by individuals instead of the government

Answer 1

capitalism

Question 2

when the resources are owned and controlled by the government

Answer 2

command economy

Question 3

a person who buys and uses goods and services

Answer 3

consumer

Question 4

the quantity of a good or service that consumers are willing and able to buy

Answer 4

demand

Question 5

the process of choosing which needs and wants will be satisfied

Answer 5

economic decision-making

Question 6

the things available to be used to produce goods and services

Answer 6

economic resources

Question 7

the method a country uses to answer the three economic questions

Answer 7

economic system

Question 8

things you can see and touch

Answer 8

goods

Question 9

when resources are owned and controlled by the people of the country

Answer 9

market economy

Question 10

the point where supply and demand are equal

Answer 10

market price

Question 11

economy with elements from both command and market economies

Answer 11

mixed economy

Question 12

things that are required in order to live

Answer 12

needs

Question 13

the value of the next-best alternative that you were not able to choose

Answer 13

opportunity cost

Question 14

individuals and organizations that determine what products and services will be available for sale

Answer 14

producers

Question 15

not having enough resources to satisfy every need

Answer 15

scarcity

Question 16

activities provided for the satisfaction of others that are consumed at the same rate they are produced

Answer 16

services

Question 17

the quantity of a good or service that businesses are willing and able to provide

Answer 17

supply

Question 18

what you make when you give up something to have something else

Answer 18

trade-off

Question 19

economy in which goods and services are produced the same way they always have been

Answer 19

traditional economy

Question 20

things that add comfort and pleasure to your life

Answer 20

wants

Question 21

IOU

Answer 21

bond

Question 22

financial situation that occurs when a government spends more than it takes in

Answer 22

budget deficit

Question 23

financial situation that occurs when a government spends less than it takes in

Answer 23

budget surplus

Question 24

movement of the economy from one condition to another and back again

Answer 24

business cycle

Question 25

spending by businesses for items such as land, buildings, equipment, and new products

Answer 25

capital project

Question 26

decrease in the general level of prices

Answer 26

deflation

Question 27

phase of the business cycle that is marked by a prolong period of high unemployment

Answer 27

depression

Question 28

total value of all final goods and services produced in a country in one year

Answer 28

GDP

Question 29

increase in the general level of prices

Answer 29

inflation

Question 30

total amount owed by the federal government

Answer 30

national debt

Question 31

salaries and wages as well as investment income and government payments to individuals

Answer 31

personal income

Question 32

number that compares prices in one year to previous years

Answer 32

price index

Question 33

production output in relation to a unit of input

Answer 33

productivity

Question 34

Demand decreases and businesses fail

Answer 34

Recession

Question 35

Unemployment decreases and demand starts to rise

Answer 35

Recovery

Question 36

the peak of the business cycle where most people are working

Answer 36

prosperity

Question 37

when demand begins to decrease and unemployment begins to rise

Answer 37

recession

Question 38

when unemployment decreases and GDP begins to rise again

Answer 38

recovery

Question 39

the sales of durable and nondurable goods bought by consumers

Answer 39

retail sales

Question 40

ownership in a corporation

Answer 40

stock

Question 41

portion of people in the labor force who are not working

Answer 41

unemployment rate