Unit 1
This is the driving factor of the study of economics in which there is a limited quantity of resources that must meet unlimited wants.
What is scarcity?
A situation in which quantity supplied is greater than quantity demanded.
What is a surplus?
A general and progressive increase in prices.
What is inflation?
A tax on imported goods.
What is a tariff?
An economy that tends to do things the way they have always been done.
What is a traditional economy?
What is the law of diminishing marginal utility?
Rent control is usually this type of a price control.
What is a price floor?
The height of an economic expansion, where real GDP stops rising.
What is peak?
When a country prohibits trade or commerce with another country.
What is an embargo?
When supply increases, which way does it shift?
What is to the right?
What is the production possibilities frontier?
This is the law that states as the price of a good goes up, the quantity supplied goes up.
What is the law of supply?
The production of goods and services valued at constant prices (adjusted for inflation).
real GDP
The ability to produce a good using fewer inputs than another producer.
What is absolute advantage?
If an economy is producing at an inefficient rate, where would they be producing on the production possibilities curve?
The most desirable alternative given up as the result of a decision.
What is opportunity cost?
The pattern in which goods and services and resources flow in the marketplace.
What is the circular flow?
Government policy that attempts to manage the economy by controlling the money and thus interest rates.
What is monetary policy?
The ability to produce a good at a lower opportunity cost than another producer.
What is comparative advantage?
The Lorax was played to illustrate economic concepts in this unit.
What is Unit 2?
What are the four factors of production?
What are entrepreneurship, land, labor, and capital?
A market structure in which many companies sell products that are similar but not identical.
What is a monopolistic competition?
Healthy numbers for unemployment and inflation.
What is ~4% (unemployment) and ~2% (inflation).
What is one reason a tariff may be imposed on another country?
What is a political statement or to focus on domestic products?
There is an increase in demand. Indicate what happens to the equilibrium quantity and price.
What is equilibrium price and quantity increase?