Economics Vocabulary_Section 1 & 2

Goods are ________________ that can be produced, bought and sold.

Services are ______________________ that can be provided by firms and paid for by customers.

Basic economics problem is how best to _________________________________.

• allocate limited resources to satisfy limited needs and wants

• allocate unlimited resources to satisfy unlimited needs and wants

• allocate limited resources to satisfy unlimited needs and wants

• allocate unlimited resources to satisfy limited needs and wants

Who are the economics agents?

• households

• public sector

• businesses

• individuals

Nationalisation is the purchase of private sector assets by the __________________.

___________________ is the transfer of ownership of assets from the public sector to the private sector.

_______________________ happens when the government sets a price above the market equilibrium price.

The lowest possible price set by the government that producers are allowed to charge consumers for the good/service produced/provided.

• maximum price

• price ceiling

• minimum price

• discounted price

A maximum price occurs when the government sets a price ______________ the market equilibrium price.

• below

• above

• same

___________________ are goods and services which when consumed caused negative spillover effects in an economy.