ECONOMICS AND PERSONAL FINANCE STUDY GUIDE 2024 QUESTIONS WITH COMPLETE ANSWERS ALREADY PASSED

Price Floor - CORRECT ANSWER The lowest legal price a commodity can be sold at. It is used by the government to prevent prices from being too low Demand Curve - CORRECT ANSWER A graph showing how the demand for a commodity or service varies with changes in its price Higher Prices - CORRECT ANSWER What prices will result from a lack of competition Recession - CORRECT ANSWER A decline in the economy that lasts at least six months which leads to a decrease in overall prices Inflation - CORRECT ANSWER An increase in the overall level of prices for goods Opportunity Cost - CORRECT ANSWER When one alternative is chosen over another, the option not chosen is considered an _________________ Needs - CORRECT ANSWER Things required for survival Equilibrium - CORRECT ANSWER The price at which quantity demanded meets quantity supplied Supply - CORRECT ANSWER The amount of a good or service that businesses have available to sell Competition - CORRECT ANSWER A rivalry between two or more businesses trying to sell products to the same customer or market Consumers - CORRECT ANSWER People who buy products Scarcity - CORRECT ANSWER When there is not enough of something for everyone who wants it Demand - CORRECT ANSWER The number of products consumers want Price Ceiling - CORRECT ANSWER The highest price businesses can charge for a product Encouraging Education - CORRECT ANSWER To attain "positive externalities" the government tries to develop an educated workforce Economics - CORRECT ANSWER The study of the choices that people and organizations make to satisfy their wants and needs Entrepreneur - CORRECT ANSWER A person who uses their ideas and takes risks in order to create a new business Factors of Production - CORRECT ANSWER The human, natural, and capital resources that are used to produce a product or service goods things that we consume to satisfy our wants and needs Inelastic - CORRECT ANSWER The item is considered a necessity, so a price change does not significantly affect the demand of the item Elasticity - CORRECT ANSWER How much the demand for an item changes based on a change in the price of that item Business Cycle - CORRECT ANSWER Upward or downward movement economic activity that is effected by Unemployment, GDP, and Inflation Peak - CORRECT ANSWER The phase of the Business Cycle, consumers spending is at its maximum