Basics of Economics
This is the study of how people make choices with limited resources.
What is economics?
This system allows consumers and producers to decide prices.
What is a free market?
When supply is greater than demand, this occurs.
What is a surplus?
This branch of economics studies individual consumers and businesses.
What is microeconomics?
Businesses that make goods directly from natural resources are called this.
What are producers?
Choosing one option means giving up another. This is called a _____.
What is a trade-off?
Name one type of economic system.
What is capitalism, socialism, or communism?
When demand is greater than supply, this occurs.
What is a shortage?
This branch studies the economy as a whole.
What is macroeconomics?
Businesses that turn raw materials into finished products are called this.
What are manufacturers?
Wants that require money, such as phones or cars, are called this type of wants.
What are economic wants?
Limiting how much of a good people can buy is called this.
What is rationing?
When prices rise and consumers buy a cheaper alternative, this is called this effect.
What is the substitution effect?
Inflation and unemployment are studied in this branch.
What is macroeconomics?
Introduction, growth, maturity, and decline describe this.
What is the product life cycle?
All societies must answer these three questions.
What to produce, how to produce, and for whom to produce?
Setting the value of a good or service is called this.
What is pricing?
A reward or penalty used to influence behavior is called this.
What is an economic incentive?
Trading goods and services between countries is called this.
What is global trade?
Burning fossil fuels contributes to this global problem.
What is climate change?
Give TWO reasons why an economic system is needed.
To manage scarce resources and decide how goods and services are produced and distributed.
Comparing the price of one good to another is known as this.
What is relative pricing?
Concert tickets sell out quickly and resale prices rise. This is an example of this.
What is a shortage?
A company raising prices due to higher costs is an example of this branch.
What is microeconomics?
Making goods in one country and selling them in another is called this.
What is globalization?