Understanding Economics Concepts

The amount of money a business makes after its expenses are paid is called

• profit

• supply

• demand

• scarcity

Focusing on a narrow range of products/services that can be produced most efficiently and cost-effectively.

• subsistence

• specialization

• scarcity

• bartering

Competition and profit motive are important characteristics of a:

• command economy

• traditional economy

• market economy

• socialist economy

A economist who introduced the steady increase of the supply of money within growing economies.

• David Ricardo

• John Maynard Keynes

• Milton Friedman

• Beatrice Webb

The development of a worldwide economy where resources flow fairly freely across borders.

• Globalization

• Economy

• GDP

• Economic Independence

Privatization refers to ....

• Transfer of assets from people to government

• Transfer of assets from public to private organizations

• Transfer of assets from corporate to public

• Transfer of assets from corporate to government

Buyers choose what items are produced based on their spending habits

• Consumer Sovereignty

• Factors of Production

• Efficiency

• Cost / Benefit Analysis

The concept that people have the right and privilege to control their possessions as they wish.

• legal equality
• open opportunity
• private property
• profit incentive

When customers and business owners exchange products and money, because it will help them both in some way.

• voluntary exchange

• volunteering to help someone for free

• opportunity cost

• reading quizzes

This means that the government should not interfere in the marketplace.

• Laissez Faire

• Capitalism

• Communism

• Socialism