Economic Principles
What does TINSTAAFL mean?
There is no such thing as a free lunch.
North Korea practices a _________ economy. All economic decisions are made by the state.
command
What is the result of little demand and high inventory of a product.
surplus
coffee beans and creamer are
complements
What is the capitol of California
Sacramento
What is the fundamental problem in economics?
Scarcity - limited resources, unlimited wants
The amish practice a primarily _____ economic system
traditional
Law of Demand says that as prices go up, _________
demand goes down
A way to sort through the positives and negatives of any big decision for a person, business or nation.
cost benefit analysis
Who was the third president of the United States
Thomas Jefferson
Due to scarcity one has to decipher between their _____ and their _____.
wants and needs
Creativity is demanded in which type of economic system
Market Economy
Supply and Price have a ________ relationship.
direct, positive
The United States fall right of ______ on the economic system spectrum towards a market economy.
answers will vary.
What is the biggest selling album of all time?
Thriller
The next best possible option when one choice is chosen over another.
opportunity cost
Countries closer to a truly mixed economy tend to have stronger ________ but higher _______.
social safety nets; taxes
The specific market price where the quantity of a good that buyers want to buy equals the quantity that sellers want to sell.
The equilibrium price
In a purely market economy, business is driven by ________.
the invisble hand, the consumer etc.
How long is a marathon?
26.2 miles
balancing act where you give up one thing, quality, or amount to get more of another
trade offs
Every country must answer these three questions when developing their economic system?
What will we produce? How will we produce it and for whom will produce?
measures how much consumer demand changes when a market factor—like price, income, or available substitutes—changes
Elasticity of demand
Necessities with few substitutes have what type of demand.
Inelastic
Name the five Spice Girls
Baby, Posh, Scary, Sporty, Ginger