Introduction to Economics Quiz

The cost of choosing one option over another. It represents the value of the best alternative that you give up.

A situation where people's unlimited wants and needs exceed the limited resources available to satisfy them.

Factors of production are the resources used to produce goods and services. These include capital (machines, tools), labor (workers), land (natural resources), and entrepreneurship (the skill to combine the other factors).

Something that can be seen and touched, like a car or a book.

Something that cannot be seen or touched, like knowledge or a service.

Getting the job done, regardless of how you do it.

Getting the job done in the best way possible, using fewer resources and maximizing output.

A type of economic system where individuals and businesses make their own choices about production and consumption, with little government intervention.

A model that shows the flow of goods, services, and money in an economy. It consists of households, firms, the government, and the foreign sector. It explains how income is generated and how expenditure is incurred.

A graph that shows the maximum combinations of two goods that can be produced with a given set of resources.

A measure of the value of money in terms of the goods and services it can buy. It can change over time due to inflation and deflation.

A plan that helps individuals or organizations allocate their available financial resources.

Setting aside money for future use.

Using savings to earn potentially higher returns by investing in assets like stocks, bonds, or real estate.

A system where individuals own and control the means of production and distribution of goods and services.

A system where the government owns and controls the means of production and distribution of goods and services.

A registered account allowing individuals to save for retirement, with tax deductions on contributions and tax-deferred growth.

A registered account designed to help families save for post-secondary education, with government grants and tax-free withdrawals for educational expenses.

The ability to repay debt based on income and expenses.

The assets used as security for a loan, which can be seized by the lender if the borrower defaults.

The industry that involves extracting raw materials from the earth, such as mining, fishing, and forestry.

The industry that processes raw materials into finished goods, including manufacturing and construction.

The combination of two companies, creating a single entity to enhance operational efficiency.

One company acquiring controlling interest in another company, leading to a takeover.

The study of how individuals and businesses make choices in the face of scarcity.

The study of the economy as a whole, including topics like inflation, unemployment, and economic growth.

A curve showing the different combinations of goods that can be produced with a given set of resources.

The amount of output produced per unit of input, such as labor or capital.

The amount of a good or service consumers are willing and able to purchase at a given price.

A specific point showing the quantity demanded at a given price.

The amount of a good or service that producers are willing and able to offer for sale at a given price.

A specific point showing the quantity supplied at a given price.

The point where demand and supply intersect, representing the price and quantity where buyers and sellers agree.

The difference between the price buyers are willing to pay and the price sellers are willing to accept.

The point where the quantity demanded equals the quantity supplied.

Factors that affect demand other than price. They cause the entire demand curve to shift.

Goods that are used to produce other goods or services.

Goods that are directly consumed by individuals.

Latin for 'all other things being equal', a way to isolate a single economic variable by holding everything else constant.

The cost of producing an additional unit of a good remains the same as production increases.

The study of how scarce resources are allocated to satisfy unlimited wants.

A framework that determines how goods and services are produced, distributed, and consumed.

The government makes all economic decisions, like what to produce and how much to produce.