Unit 1
What is the term for the value of the next best alternative that must be forgone when a decision is made, often used in decision-making scenarios?
What is opportunity cost?
What term describes the point where the supply and demand curves intersect, indicating the quantity at which the quantity demanded equals the quantity supplied?
What is equilibrium?
What term describes the concept that as a person consumes more units of a good or service, the additional satisfaction or pleasure gained from each additional unit tends to decrease?
What is the law of diminishing marginal utility?
What type of goods are non-excludable and non-rivalrous, providing benefits to all members of society, such as street lighting?
What are public goods?
What term is used to describe a government-imposed maximum price that prevents a good or service from being sold at a price higher than the specified limit?
What is a price ceiling?
This type of economic system is characterized by central government planning and control of all resources and production. What is it?
What is a command economy?
According to the __________ __ _________, as the price of a good or service increases, the quantity supplied increases, and as the price decreases, the quantity supplied decreases.
What is the Law of Supply
A market structure characterized by a single seller with no close substitutes for the product is known as what?
What is a monopoly?
When the production or consumption of a good or service has an impact on a third party who is not directly involved, it is known as what?
What are externalities?
When you multiply the quantity of goods sold by the price at which they are sold, you calculate a key economic metric known as what?
What is revenue?
In a pure __________ ________, prices and production are determined by competition among businesses and consumers. What is the missing term?
What is a market economy?
Goods that are used together, such as peanut butter and jelly, are considered ____________.
What are complements
What type of market structure is characterized by a small number of large firms dominating the market, often leading to interdependence in decision-making?
What is an oligopoly?
What is the acronym for the total value of all goods and services produced in a country within a specific time period?
What is GDP (Gross Domestic Product)?
In contrast to price ceilings, what term is used for a government-imposed minimum price that prevents a good or service from being sold below a certain level?
What is a price floor?
Identify the term associated with the situation where shared resources are overused and depleted due to individual self-interest, often leading to environmental issues. What is it?
What is the tragedy of the commons?
Identify two economic factors that can shift the demand curve for a product, influencing consumers' willingness and ability to purchase.
In which market structure do many firms compete by selling similar but not identical products, allowing for product differentiation and some degree of market power?
What is monopolistic competition?
What term describes the recurring periods of growth and contraction in an economy, marked by fluctuations in economic activity, employment, and production?
What is the business cycle?
In economic terms, what is the difference between revenue and profit? Provide a concise explanation.
Revenue is the total income generated from sales, while profit is the total income minus total costs. In equation form: Profit = Revenue - Costs.
Name the three classical factors of production that economists commonly refer to as the essential inputs for any economic activity.
What are Land, Labor, and Capital?
What term describes the situation in a market where the Qs exceeds the Qd at the prevailing price, leading to an excess of goods or services?
What is a Surplus?
What is the term for a market structure characterized by many small firms, identical products, and ease of entry and exit, resulting in intense competition and no individual firm having significant market power?
What is perfect competition?
In the context of the labor market, what term refers to organizations formed by workers to collectively bargain for better wages, benefits, and working conditions?
What are labor unions?
In the context of international trade, what economic term describes a situation where a country's imports exceed its exports, resulting in a negative balance in the trade of goods and services?
What is a trade Deficit?