Consumer Choices
This is something you cannot live without, such as food, water, shelter, or basic clothing.
What is a need?
This is the study of how people, governments, and businesses use limited resources to satisfy unlimited wants.
What is economics?
This economic system relies heavily on traditions passed down from generation to generation.
What is a traditional economy?
When the price of a product goes up, producers are generally willing to do this.
What is supply more?
The point where quantity demanded equals quantity supplied.
What is equilibrium?
These are things you would like to have but can live without.
What are wants?
The basic economic problem caused by unlimited wants and limited resources.
What is scarcity?
In this type of economy, the government makes the major economic decisions
What is a command economy?
When the price of a product goes up, consumers generally do this.
What is buy less?
At equilibrium, quantity demanded and quantity supplied are ________.
What is equal?
A product you can physically see and touch is called this.
What is a good?
The next best alternative given up when a choice is made.
What is opportunity cost?
In this type of economy, businesses and consumers largely determine what is produced through buying and selling.
What is a market economy?
A factory develops a machine that allows workers to produce twice as many T-shirts per hour. Does supply increase or decrease?
Supply increases.
If quantity demanded is greater than quantity supplied, the market has this.
This type of purchase is made on the spur of the moment.
What is an impulse purchase?
Name the three factors of production discussed in class.
What are natural, human, and capital resources?
This type of economy combines elements of different economic systems.
What is a mixed economy?
A health study says energy drinks are harmful, causing fewer people to want them. What happens to demand?
Demand decreases.
A shortage generally pushes prices in this direction
Increase/Up
Put these five steps of the consumer decision-making process in the correct order.
You have $20. You can either buy a video game or go to the movies. You choose the video game. What is the opportunity cost?
The movies - the next best alternative
In a market economy, who decides HOW to produce goods and services?
Businesses
A concert has 20,000 tickets available, but 50,000 people want tickets. Is this a shortage or surplus? Explain.
Shortage
A surplus generally pushes prices in this direction.
Decrease/Down