Honors Econ Unit 2 Vocabulary

1. When a product or service exceeds the demand
2. Economic marketplace where businesses sell goods and services to consumers, companies, and other buyers.
4. A government rule that sets the maximum legal price you can charge for a good, service or wage.
5. An organization or economic system that makes and sells goods or services to people in exchange for money.
8. A basic economic rule stating that when the price of a good or service goes up suppliers will produce and offer more of it.
10. Economic marketplace where businesses buy essential inputs they need to make goods and services.
11. A visual model that shows how money, goods, and services move through an economy between households and businesses.

1. A market condition where the demand for the product or service is greater than the available supply at the current price.
3. A specific market price where the number of goods consumers want to buy equals the number of good producers want to sell.
6. A basic economic rule stating that if the price of an item goes up the demand goes down, if the price goes down the demand goes up.
7. A government rule that sets the lowest legal price you can charge for a good, service or wage.
9. A basic economic unit consisting of one or more people living within the same house who make joint financial and economic decisions.