Economic Concepts and Decision Making Quiz

The fundamental principle that the availability of a product and the desire for that product affect its price.

A measure of how sensitive the quantity demanded of a good is to a change in its price.

A trade agreement between Canada, Mexico, and the United States to promote economic cooperation and reduce trade barriers.

A school of economic thought that supports minimal government intervention and emphasizes the importance of free markets.

As the price of a good or service increases, the quantity demanded decreases, and vice versa.

The sum of all goods and services produced in a country, measured by consumption, investment, government spending, and net exports.

The value of the best alternative that must be forgone in order to pursue a different option.

A key indicator representing the total value of all goods and services produced in a country.

A situation where individuals, acting in their own self-interest, deplete a shared resource, leading to negative consequences for all.

The central bank's responsibility for managing the money supply, interest rates, and economic stability.

An economic system where private individuals or businesses own and control the means of production.

Graphical representation illustrating the inverse relationship between inflation and unemployment rates.

The central bank responsible for regulating financial institutions and controlling the money supply and interest rates.

Tax systems where the tax rate increases with the taxpayer's income (progressive) or decreases as income rises (regressive).

A concept where shared resources are depleted due to individuals acting in their self-interest.