Which of th e terms describes an economy in which prices form the basis for economic decisions?

market

What is the term for the act of buyers and sellers freely engaging in market transactions?

voluntary exchange

A product for which quantity changes very little when prices go up or down is said to be _____________________

supply inelastic.

What kind of shop does not require workers to join a union, but allows
them to choose to do so?

modified union

What occurs when we lack the resources to produce the things
we want.

Scarcity

When a job is broken down into several, smaller tasks that are

performed by different workers, it is called _________________

division of labor.

What are expenses that increase as production grows?

variable costs

Which term means that stockh olders are not responsible for the debts of the corporation?

limited liability

If price changes have little effect on the quantity of a product demanded the product is said to have _________________

inelastic demand.

Which principle shows how additional satisfaction decreases as more units are consumed?

diminishing marginal utility