18. A resource is used to produce a good, therefore it cannot be used to produce something else. This is called
opportunity costs.
trade off.
substitution effect.
19. The value of the next best alternative that is given up to obtain a preferred item is called
opportunity costs.
trade off.
substitution effect.
20. Wealth of Nations was a book written by
Thomas Jefferson
George Washington
Adam Smith
21. The term that means let people do as they choose, in economics, is
capitalism.
free enterprise system.
laissez faire.
22. The receiving of funds to buy goods and services today with the promise to pay for them at a later date is called
principal.
credit.
interest.
23. A mortgage almost always takes the form of a/an
installment loan.
lease loan.
renter's contract.
24.How people react to changes in prices in terms of the quantities demanded of a good or service is called
law of demand.
law of supply.
law of economics.
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