Chapters 1-3

____ is the term for all activities involved in developing and exchanging products.

• Business

• Entrepreneurship

• Economics

• Corporation

Customers who purchase goods and services for their own use are called ____.

• individuals

• consumers

• purchasers

• groups

____ utility is added when a business changes the form of a good or service to make it more useful.

• Possession

• Time

• Form

• Place

A ____ is anywhere buyers and sellers meet to buy and sell goods and services.

• store

• workplace

• restaraunt

• market

The law of ____ says that the price of a product is determined by the relationship of the supply of a product and the demand for the product.

• supply and demand

• physics

• consumer behavior

• business

____ is the market value of all final products produced in a country during a specific time period.

• Standard of Living

• Annual Sales

• Product Value

• Gross domestic product

The four components of GDP are consumer spending, business investment, government spending, and ____.

• economic growth

• net exports

• net imports

• inflation

The ____ rate is the rate of change in prices calculated on a monthly or yearly basis.

• inflation

• deflation

• interest

• fixed income

The ____ represents the cost of a loan and is expressed as a percent of the amount borrowed.

• CPI

• interest rate

• principle

• supply

Fiscal policy is the tax and spending decisions made by the president and ____.

• The Fed

• The IRS

• The Supreme Court

• Congress