Basics
the study of wealth and how goods and services are used to produce wealth.
Economics
Where there is more of an item available than is needed or wanted
Surplus
True or False: Employed people are people with jobs.
True
When information is presented in a different form that's easier to process (telephone number or social security number are examples)
Chunking
Name one example of a good and one example of a service.
(answer will vary)
Goods = products that can be bought or sold
Service = activities that people do
The method of economic analysis that applies psychological insights into human behavior to explain economic decision-making.
Behavioral Economics
the term used to explain how much or how little of an item is available
Supply
What is it called with individuals and organizations seek to attain the highest level of satisfaction from their economic decisions
Utility Maximization
an possible error in thinking when a person uses inner biases to make decisions
Cognitive bias
When an item is very popular, it is in ____ demand.
High
The specific part of economics studying the overall economic systems
Macroeconomics
a general increase in prices and fall in the purchasing value of money
Inflation
When the change in demand is sensitive to a small change in price
Elasticity
Example: when the price of Lays chips increases, consumers are more likely to shift to a different brand, therefore, driving the demand down or vice versa
When there is a very limited supply of something
Scarcity
When an item is not very popular, it's in ___ demand.
Low
the specific part of economics focused on behaviors of individuals, households and companies
Microeconomics
What is Opportunity Cost?
the loss of a potential gain from other alternatives when one alternative is chosen
The number of millennials that have spent money they didn't have and have gone into debt to keep up with their friends.
48%
Name one cognitive bias
Loss aversion, endowment effect, sunk cost fallacy, herd mentality, FOMO, confirmation bias, overconfidence, hedonic adaptation, ambiguity aversion, bounded rationality
What is the relationship between earnings and unemployment rates?
When earnings increase, unemployment rates decrease
the loss of potential gain from other alternatives when one alternative is chosen
Opportunity Cost
a family of indexes that measure price change experienced by urban consumers
Consumer Price Index (CPI)
The percentage of people that make purchasing decisions due to FOMO and what is FOMO?
60% & Fear of Missing Out
The tendency to choose an option that the majority chooses
Herd mentality or The Bandwagon Effect
When the supply and demand are equal or is the point on a graph when the supply line intersects the demand line.
Equilibrium