Economics Section 2 (Chapter 5-8)

3. the ones who undertake economic activities and make economic decisions.
11. a product whose demand decreases as income rises, and increases as income falls.
14. a product which can be used with another one.
16. a fall in the quantity demanded (QD) caused by a rise in the price (P) of a product.
17. the willingness and ability to sell a product.
19. a rise in the quantity supplied (QS) caused by a rise in price (P).
20. a rise in the quantity supplied (QS) at any given price (P).
21. a payment by the govt. to encourage the production of a product.
24. the situation where demand and supply are equal at a current price.
25. a rise in the quantity demanded (QD) caused by a fall in the price (P) of the product.

1. a payment to the government.
2. an rise in demand at any given price.
4. the study of the economy as a whole.
5. a fall in demand at any given price.
6. a product whose demand increases as income rises, and decreases as income falls.
7. the study of the behavior and decisions of households and firms; and the performance of individual markets.
8. an economic system that includes both the private and public sector business activities.
9. a fall in the quantity supplied (QS) caused by a fall in price (P).
10. the situation where demand and supply are not equal at a current price.
12. an economic system where the government makes the crucial decisions; land and capital are state-owned; resources are allocated by directives.
13. a fall in the quantity supplied (QS) at any given price.
15. an economic system where the customers make the crucial decisions; land and capital are privately owned; resources are allocated by the price mechanism.
18. a product that can be used instead of another.
22. the willingness and ability to buy a product.
23. the average cost of production(total cost/output.