Basics of Economics
Economics is the study of how to meet competing wants with limited __________
What are resources?
Scarcity is the gap between unlimited wants and __________ resources.
: What are limited?
The four economic activities are consumption, production, exchange, and __________.
What is distribution?
The Law of Demand states that as price goes up, quantity demanded goes __________.
What is down?
Price is the amount of __________ paid for a good or service.
What is money?
What are the three main categories of resources?
What are natural, human, and capital?
What term means deciding which goods and services lead to the most satisfaction?
What is economizing?
The ultimate goal of all economic activity is __________.
What is consumption?
The Law of Supply states that quantity supplied varies in __________ relation to price.
What is direct?
__________ is one price compared to another.
what is relative price
Wants are described as unlimited, __________, and competing.
What are changing?
The benefit lost when you choose one option over another is called __________.
What is opportunity cost?
Producers are individuals who __________ or provide goods and services.
What is make?
A market with high supply, low demand, and low prices is called a __________ market.
What is a buyer’s market?
The price at which quantity supplied equals quantity demanded is called the __________ price.
What is equilibrium?
A want that requires spending money is called a(n) __________ want.
What is an economic want?
Giving up all or part of one thing to get something else is called a(n) __________.
What is a trade-off?
Sustainable consumption and production aim to minimize __________ use and pollution.
What are resources?
Demand that changes significantly with price is called __________ demand
What is elastic?
Quantities supplied greater than demanded create excess __________.
What is supply?
Resources are items used to accomplish other activities such as __________
What is producing goods and services?
Every economy must answer three questions. Name one of them.
What will be produced? / How will it be produced? / How will it be allocated?
Payments for human resources are called wages, salaries, and __________.
What are profits?
Name one factor that affects supply.
Cost of production / number of producers / future expectations / natural disasters / government policies / technology
__________ causes buyers to replace one product with another when relative prices change
what is the substitution effect?