Economic Systems
The two ends of the continuum of economic systems include Communism (Planned) and...
Pure Competition (Free Market/Capitalism)
When tracked over time, is the best indicator of inflation? Consumer _______ Index.
Price (CPI)
After Halloween, candy is marked 50% off because of reduced
Demand
Many sellers offer many buyers a standardized product is this type of competition?
Perfect
Ms. Goodwin spends her day studying the production, distribution, and consumption of goods and services. Ms. Goodwin most likely works as a(n) __________ for the government. Hint what career did you research in xello?
Economist
Generally speaking, economic systems can be divided into two broad categories. They are:
Planned systems and free market systems
Communism (Planned); Pure Competition (Free Market/Capitalism)
The broad goals of our economy include growth, price stability, and high __________
employment
Insomnia Cookies' new baker accidentally baked too many cookies and wants to sell them before the end of the day. The store may need to offer customers a discount in order to sell the extra cookies since there is an increase in __________.
Supply
A market where numerous sellers sell a standardized product to many buyers and no individual seller can influence prices is known as perfect __________
competition
To predict where the economy may be headed in the future, government analysts and economists use 2 types of economic indicators leading and?
lagging
In this type of economic system the government has the most control and ownership
Planned/communism
The market value of all goods and services produced in a given year is known as
GDP
The intersection of the supply and demand curves is known as the __________ price
Equilibrium
Public utilities are an example of what type of competition
Monopoly
An example of a differentiated product could include?
automobile.....
In this type of economic system individuals have control and ownership
Pure Competition (Free Market/Capitalism)
An increase in general price levels is known as
inflation
Imagine that the equilibrium price for a gallon of gas is $3.00. In order to make its citizens happy, the government imposes a price ceiling of $2.50. What is the expected result of this action? Shortage or Surplus?
Gas shortage
Changes in price by one seller influence prices of the other sellers is a characteristic of what type of competition
oligopoly
The part of economics study that looks at the behavior of people and organizations in particular markets is known as __________ economics
micro
The part of economics study that looks at the operation of a nation’s economy as a whole is known as ______ economics
macro
The price of a bottle of Coca Cola remained the same from 1886 to 1959 despite Prohibition, The Great Depression, and two World Wars occurring during that time. When the price increased in the following years, even though the product had not changed, the increase could best be described as:
Inflation
The quantity of a product that buyers are willing to purchase at various prices is known as
Demand
Elon Musk’s decision to form a new automotive manufacturing company is unique because the automotive industry is one that has high start up costs, there are very few sellers in the industry, and the number of firms entering the market is low. Elon’s company Tesla is competing in what type of market?
Oligopoly
The study of how society chooses to employ resources to produce goods and services and distribute them for consumption among various competing groups and individuals is known as
Economics