Question

2
drag the tile to the correct boxes to complete the pairs.
match each scenario with the economic concept at play.
consumer sovereignty property rights interest
jamie borrowed $10,000 from the bank. eventually, the loan payments will total $11,156.
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.
michael owns a two - story house with a large lawn. he decides to use his house and lawn to run a fitness boot camp.

Explanation:

1. When a borrower repays more than the principal loan amount, the extra sum is the cost of borrowing, which is interest.
2. When consumers choose one product over another, forcing a business to adjust production, this reflects consumers' power to drive market choices, which is consumer sovereignty.
3. When an owner uses their owned property as they wish, this is an exercise of their rights over their property, which is property rights.

Answer:

• Jamie borrowed $10,000 from the bank. Eventually, the loan payments will total $11,156. → interest
• 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. → consumer sovereignty
• Michael owns a two-story house with a large lawn. He decides to use his house and lawn to run a fitness boot camp → property rights