Vocabulary
The quantity of a good or service that businesses are willing and able to provide
Supply
A person who buys and uses goods and services
Consumer
Needs and wants are this ___________
Unlimited
A nation’s plan for answering the three economic questions
Economic System
How many steps are there in the decision making process
6
Activities that are consumed at the same time they are produced
Services
The rivalry among businesses to sell their goods and services
Competition
Name a service business
Lawn Care
Hair Salon
Chef
Tutor
Transportation
The United States has this economy
Market Economy
This is the first step of the decision making process
Define the problem
The value of the next-best alternative that you did not choose
Opportunity Cost
The demand curve goes in this direction
Down
Name the three economic resources
Natural
Human
Capital
Goods and services are produced the way it has always been done
Traditional Economy
This is the fourth step of the decision making process
Choose a choice
When you give up something to have something else
Tradeoff
The point where supply and demand are equal
Market Price
5
Food
Water
Shelter
Clothing
Safety
North Korea has this type of economy
Command Economy
This is the third step of the decision making process
Evaluate the advantages and disadvantages of each choice
The private ownership of resources by individuals, rather than by the government
Capitalism
What is a popular example of something that had a very high demand but low supply during COVID? (We talked about this in class)
Toilet Paper
One common rule of thumb is that when supply increases....
Price Decreases
Combines elements of the command and market economies
Mixed Economy
Not having enough resources to satisfy every need
Scarcity