Economic Fundamentals
What are the factors of production?
This term refers to the resources required to produce goods and services, including land, labor, capital, and entrepreneurship.
What is price elasticity of demand?
This term refers to the responsiveness of the quantity demanded of a good to a change in its price.
What is a supply and demand chart?
This visual representation shows the relationship between the quantity of a good that producers are willing to sell and the quantity that consumers are willing to buy at different prices.
What is a price floor?
This term refers to the minimum price that can be legally charged for a good or service, set by the government.
What are the three questions addressed in every economic system?
These are the three fundamental questions every economic system must address: What to produce, how to produce, and for whom to produce.
What is price elasticity of supply?
This term refers to the responsiveness of the quantity supplied of a good to a change in its price.
What is Gross Domestic Product (GDP)?
This term refers to the total amount of goods and services produced within a country during a specific period.
What is market demand?
This term describes the total amount of a good or service that all consumers in a market are willing and able to purchase at a given price.
What is cost-benefit analysis?
This analysis involves comparing the costs and benefits of different choices to determine the best option in terms of opportunity cost.
What is a surplus?
This term describes a situation where the price of a good is above its equilibrium price, leading to excess supply.
What is a monopoly?
This term describes a market structure where a single seller controls the entire market for a particular good or service.
What is market supply?
This term describes the total amount of a good or service that all producers in a market are willing and able to sell at a given price.
What is opportunity cost?
This term describes the value of the next best alternative that is forgone when making a decision.
What is a shortage?
This term describes a situation where the price of a good is below its equilibrium price, leading to excess demand.
What is marginal utility?
This term refers to the additional satisfaction or utility that a person receives from consuming an additional unit of a good or service.
What is a demand curve?
This term refers to the graphical representation of the relationship between the price of a good and the quantity demanded.
What is the law of supply and demand?
This economic principle states that the price of a good is determined by the relationship between its supply and demand.
What is a price ceiling?
This term refers to the maximum price that can be legally charged for a good or service, set by the government.
What is market equilibrium?
This term describes the situation where the quantity demanded of a good equals the quantity supplied at a particular price.
What is a supply curve?
This term refers to the graphical representation of the relationship between the price of a good and the quantity supplied.