Questions and Answers | Latest
Version | 2025/2026 | Correct & Verified
What is economics mainly concerned with?
✔✔ How people make choices with limited resources
What are scarce resources?
✔✔ Resources that are limited in supply
What is opportunity cost?
✔✔ The next best alternative given up
What are the three basic economic questions?
✔✔ What to produce, how to produce, and for whom to produce
What is demand?
✔✔ The willingness and ability to buy goods
What is supply?
✔✔ The willingness and ability to sell goods
What happens to demand when prices fall?
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,✔✔ Demand usually increases
What happens to supply when prices rise?
✔✔ Supply usually increases
What is equilibrium price?
✔✔ The price where demand equals supply
What is a shortage?
✔✔ When demand is greater than supply
What is a surplus?
✔✔ When supply is greater than demand
What is inflation?
✔✔ A general rise in prices over time
What is deflation?
✔✔ A general fall in prices over time
What is money?
✔✔ Anything generally accepted as a medium of exchange
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, What is barter?
✔✔ Exchange of goods and services without money
What are the functions of money?
✔✔ Medium of exchange, store of value, unit of account
What is saving?
✔✔ Setting aside income for future use
What is consumption?
✔✔ Spending on goods and services
What is income?
✔✔ Money earned from work or investments
What is a budget?
✔✔ A plan for income and spending
What is a deficit?
✔✔ When spending is greater than income
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