Economics II Vocabulary Test

1. Competition:

C. T)e situation in 1)ic) people are 1illin* and a#le to 1or2 at current 1a*es #ut cannot find 4o#s. D. T)e purc)ase of somet)in* usin* a promise to pay in t)e future. . T)e ratio of output /*oods and5or ser-ices0 to input6 or t)e amount of output produced per unit of producti-e resources o-er a period of time. 7. $oods and ser-ices t)at are pro-ided #y t)e *o-ernment. T)ey are often *oods t)at indi-iduals don8t #uy enou*) of6 #ut pro-ide e-eryone #enefits if 1idely consumed6 suc) as education or national defense. $. T)e difference #et1een t)e total re-enue and total cost of producint* and sellin* a *ood or ser-ice in a #usiness9 entrepreneurial income. :. T)e 1ay a society or*ani3es t)e production6 consumption6 and distri#ution of *oods and ser-ices. ,. =. ;e<uired payments of money made to *o-ernments #y )ouse)olds and #usiness firms. . sc)edule of )o1 muc) producers are 1illin* and a#le to produce and sell at eac) possi#le price durin* some time period.

2. Supply: 3. Trade-offs: 4. Demand: 5. Prices: 6. ntrepreneurs:

!. Profit: ". Pu#lic $oods: %. conomic Systems:

1&.Ta'es: 11. Credit: 12.(nemployment: 13.S)orta*es and Surpluses: 14.+arriers to Trade: 15.,ncenti-es: 16.Producti-ity: 1!.,nflation:
.. . persistent rise in o-erall prices. +. T)e )uman resource /person0 1)o assumes t)e ris2 of or*ani3in* t)e ot)er producti-e resources to produce *oods and ser-ices.

>. . sc)edule of )o1 muc) consumers are 1illin* and a#le to #uy at eac) possi#le price durin* some time period ?. $o-ernment policies or re*ulation t)at restricts international trade6 suc) as tariffs and import duties. @. T)e -alue of a *ood or ser-ice stated in money terms A. ;i-alry amon* sellers to sell /supply0 *oods and ser-ices6 or amon* #uyers to #uy /ac<uire0 a ser-ice or *ood. B. $i-in* up one t)in* or acti-ity to *et some of anot)er. P. T)e situation resultin* 1)en t)e <uantity demanded e'ceeds /s)orta*e0 or is less t)an /s)orta*e0 t)e <uantity supplied at t)e current price of a *ood6 ser-ice6 or resource.

C. T)in*s t)at moti-ate and influence t)e #e)a-ior of )ouse)olds and #usinesses. Prices6 profits6 and losses act as incenti-es for participants to ta2e action in a mar2et economy.