Question

Match the following economic concepts with their appropriate definitions. 1. How the demands for goods and services naturally balance out supply and demand 2. The price of a good or service will Thenrice of a go be based on both the quantity desired and available BRIEL v Willingness to pay v cost-benefit analysis 3. Determining the monetary pros and cons of an action to see which outweighs the other bib bande v the invisible hand 4. A survey to determine how much people value a good or service that is not currently monetized v Indicators of progress 5. Various indexes that aim to quantify the developmental state of a group Next Page Page 4 of 12

Answer 1

1.

Supply and demand - 2

Willingness to pay - 4

Cost-benefit analysis - 3

The invisible hand - 1

Indicators of progress - 5

Explanation: Supply and demand both are necessary to determine the price and quantity. Willingness to pay is the monetary value people put on goods or services. Cost and benefit analysis is the study of the gains and the costs from an alternative. The invisible hand is the market force that determines price level. Indicators of progress show how certain project progresses through its life-cycle.