Supply and Demand
What is the Law of Demand?
As the price of a good decreases, the quantity demanded increases, and vice versa.
What are the four main factors of production?
Land, labor, capital, and entrepreneurship.
What do we call the resources used to make all goods and services?
Factors of production
What will not shift the Demand curve?
Changes in price.
Which factor of production refers to natural resources such as minerals, forests, and water?
Land
What term describes the most desirable alternative given up in any decision?
Opportunity cost
What is an example of the tastes of consumers affecting demand?
If consumers suddenly prefer electric cars over gasoline cars, the demand for electric cars will increase.
A new office building is an example of which factor of production?
Capital
What is economics?
The study of how people allocate scarce resources to fulfill their wants and needs.
What is the Income Effect?
How changes in a consumer’s income impact their purchasing decisions.
Who takes the risk and combines the other factors of production to create goods and services?
Entrepreneurs
What is the incentive for manufacturers to sell their products?
Profit
What is 'Quantity Supplied'?
The specific amount of a good that producers are willing to sell at a given price.
What do we call the ability to transform raw materials into finished products?
Production
What does a point on the production possibilities graph represent?
Efficiency in resource allocation.