Question

Match each scenario with the economic concept at play.

1.Jamie borrowed $10,000 from the bank. Eventually, the loan payments will total $11,156.

2.Super Soba noodles was doing fine until the arrival of a new brand of noodles, Magic Soba. People stopped buying Super Soba, opting for Magic Soba instead. Gradually, Super Soba had to reduce production as demand decreased.

3.Michael owns a two-story house with a large lawn. He decides to use his house and lawn to run a fitness boot camp

consumer sovereignty

property rights

interest

Answer 1

property rights Michael owns a two-story house with a large lawn. He decides to use his house and lawn to run a fitness boot camp.

consumer sovereignty Super Soba noodles was doing fine until the arrival of a new brand of noodles, Magic Soba. People stopped buying Super Soba, opting for Magic Soba instead. Gradually, Super Soba had to reduce production as demand decreased.


interest Jamie borrowed $10,000 from the bank. Eventually, the loan payments will total $11,156.

Answer 2

consumer sovereignty --> Super Soba noodles was doing fine until the arrival of a new brand of noodles, Magic Soba. People stopped buying Super Soba, opting for Magic Soba instead. Gradually, Super Soba had to reduce production as demand decreased.


property rights --> Michael owns a two-story house with a large lawn. He decides to use his house and lawn to run a fitness boot camp.

interest --> Jamie borrowed $10,000 from the bank. Eventually, the loan payments will total $11,156.