Economics Vocabulary

What are goods?

• Products made or grown

• Work someone does for others

• Activities people enjoy

• Places people visit

What are services?

• Products made or grown

• Work someone does for others

• Items people buy

• Natural resources

Which of the following is an example of a good?

• A doctor treating a patient

• A mechanic fixing a car

• A loaf of bread

• A teacher giving a lesson

Which of the following is an example of a service?

• A bag of groceries

• A new pair of shoes

• A haircut

• A book

What does "surplus" mean in economic terms?

• Quantity available is greater than the quantity demanded

• Quantity demanded is greater than the quantity available

• Quantity available is equal to the quantity demanded

• There is no demand for the quantity available

What does "shortage" mean in economic terms?

• Quantity available is greater than the quantity demanded

• Quantity demanded is greater than the quantity available

• Quantity available is equal to the quantity demanded

• There is no demand for the quantity available

Which of the following is an example of a surplus?

• A store has more milk than customers want to buy

• A store runs out of bread because many customers want to buy it

• A store has just enough eggs to meet customer demand

• A store has no customers for its products

Which of the following is an example of a shortage?

• A store has more milk than customers want to buy

• A store runs out of bread because many customers want to buy it

• A store has just enough eggs to meet customer demand

• A store has no customers for its products

What does "Supply" refer to in economics?

• The amount of a product or resource available to consumers

• The amount of money consumers are willing to spend

• The interest consumers have in a product

• The price of a product

What is the supply and demand situation when there is only one restaurant in a town that sells pizza?

• High supply, low demand

• Low supply, high demand

• High supply, high demand

• Low supply, low demand