ECONOMICS FTE 2026

The study of how society allocates scarce resources to satisfy unlimited wants is known as __________.

Economics

The fundamental problem in economics is __________.

Scarcity

The value of the next best alternative forgone when a choice is made is called __________.

Opportunity cost

Natural resources available for production (e.g., minerals, water, land area) are referred to as __________.

Land

Human physical and mental effort used in production is known as __________.

Labour

Man-made goods used to produce other goods and services are referred to as __________.

Capital

The ability to combine factors of production and take risks is known as __________.

Enterprise

The maximum potential output combinations of two goods/services an economy can produce given fixed resources and technology is illustrated by __________.

Production Possibility Curve (PPC)

In a market economy, resource allocation is determined by __________.

Price mechanism (supply and demand)

The three key economic questions are: What to produce? How to produce? For whom to produce? __________.

(No answer needed, already stated)

A government or central body decides resource allocation in a __________ economy.

Planned / Command Economy

The law of demand states that as price increases, quantity demanded __________.

decreases

The quantity of a good/service producers are willing and able to offer for sale at various price levels is known as __________.

Supply

Market equilibrium occurs where __________ equals __________.

Quantity Demanded equals Quantity Supplied

Price elasticity of demand (PED) measures the responsiveness of __________ to a change in __________.

quantity demanded; price

A legally imposed price set above equilibrium price is known as a __________.

Minimum Price (Price Floor)

Financial institutions that accept deposits, make loans, and offer financial services are known as __________.

Commercial Banks

The income remaining after direct taxes and contributions is called __________.

Disposable Income

The total cost equals fixed cost plus __________.

Variable Cost (TC = FC + VC)

The characteristics of money include being durable, portable, divisible, scarce, and __________.

acceptable

An organization that negotiates wages, working conditions, and rights through collective bargaining is known as a __________.

Trade Union

The government intervention type that imposes taxes on spending is called __________.

Indirect Taxes

The formula for total revenue is __________.

TR = P × Q

Long run expansion of output leading to falling average costs is referred to as __________.

Economies of Scale

The government economic objective of reducing excessive wealth inequality is called __________.

Redistribution of Income