Basic Economic Concepts
This means resources are limited but wants are unlimited.
What is scarcity?
What happens when quantity demanded equals quantity supplied?
What is equilibrium?
This tax is added when buying most goods.
What is sales tax?
This economy is controlled mainly by the government.
What is command economy?
This type of money is backed by government authority.
What is a fiat money?
This type of loan is used to buy a house.
What is a mortgage?
This is the next best alternative given up when making a choice.
What is opportunity cost?
According to the law of demand, what happens to quantity demanded when price falls?
What is quantity demanded increases?
This tax is taken out of your paycheck.
What is income tax?
This economy uses supply and demand to determine prices.
What is Market Economy?
This helps businesses increase efficiency by focusing on strengths.
What is specialization?
This is usually used to borrow money.
What is a credit card?
This is the study of how people use resources and money.
What is economics?
What curve shifts right when advertising for a product is successful?
What is the demand curve?
This tax is paid on homes and land.
What is property tax?
This economy is based on historical customs.
What is a traditional economy?
This type of insurance helps cover medical expenses.
What is health insurance?
This factor of production includes workers.
What is labor?
This person starts and runs a business.
What is an entreprenuer?
What happens when a price ceiling is set below equilibrium?
What is a shortage?
This is total pay, before deductions.
What is gross pay?
This type of economy is used in the United States.
What is a market economy?
This service in Long Island may receive funding from local taxes.
What is fire departments, police officers, schools, etc.
This type of good sees demand increase when income rises.
What is a normal good?
These are the four factors of production.
What is land, labor, capital and entrepreneurship?
If the price of apples rises and consumers buy more oranges, which economic effect is occurring?
What is the substitution effect?
This is pay after taxes and deductions.
What is the net pay?
This system requires people to trade goods directly without money.
What is a Barter System?
This type of money has value like gold or silver.
What is commodity money?
Peanut Butter and Jelly are examples of what?
What are complementary goods?