Basic Economic Concepts
What is the definition of scarcity?
Unlimited wants + limited resources
What is the main way banks make profit?
By charging higher interest on loans than they pay on deposits (interest rate spread)
When price goes up, what happens to quantity demanded?
It goes down
Hometown
Flint
In economics, what is a “trade-off?”
Giving up one thing in order to get something else.
What happens to the supply curve when production becomes cheaper?
Supply increases (shifts right)
What kind of car does the professor drive?
(Jeep) Grand Cherokee
What do we call the next best alternative you give up when making a choice?
Opportunity cost
What is a shortage?
When quantity demanded is greater than quantity supplied.
What is the professor’s favorite song?
99 Problems
What 3 questions does an economic system answer?
“what to produce, how to produce, and for whom to produce it for”
If a celebrity promotes a product, what curve is affected?
Demand curve shifts right.
What is the Professor’s weakness?
Bad B!*@#%s
What economic systems did we cover in class?
Market, command, mixed economy
What do we call the point where consumers and producers agree on price?
Market Equilibrium
Who is the Professor’s favorite student?
All of y’all! 💪🏾