Decisions Decisions
A short-term market condition where the quantity demanded exceeds the quantity supplied at a given price; often due to disruptions.
What is a shortage?
This is a market structure in which one firm controls the supply of a good or service and can influence price
What is a monopoly?
This is the rule that when prices increases, more of that good/service will be provided
These are the three factors of production involved in creating a good or service
What is land, labor, and capital?
The ability to produce a good at a lower opportunity cost than another producer/country?
What is comparative advantage?
This condition exists because resources are limited while human wants are unlimited, forcing choices about resource use
What is scarcity?
This is a market structure dominated by a small number of large firms whose decisions affect each other
What is an oligopoly?
This is the point where quantity demanded equals quantity supplied
What is market equilibrium?
These kinds of costs changes depending on how much of a good/service is produced and consumed
What are variable costs?
This is the ability to produce more of a good using the same amount of resources as others
What is absolute advantage?
This is the value of the next best alternative given up when a decision is made
What is opportunity cost?
What is a mixed economy?
When the price of a product goes up so much, that people start to choose alternative products, lowering the demand
What is the substitution effect?
Daily Double
What are fixed costs?
This is when people, firms, or countries focus on producing a limited range of goods to increase efficiency
What is specialization?
People affect demand by making purchases based on things not related to price called this
What are non-price determinants?
This is the market structure where many small firms sell identical products and are price takers
What is pure competition?
This is the curve that shows the maximum possible output combinations of two goods an economy can produce given resources and technology
What is the production possibility frontier (PPF)?
What are economies of scale?
This is when a group of firms work together to control prices and limit competition
What is a cartel?
This is the cost or benefit from an economic activity experienced by third parties not directly involved in the transaction
What is an externality?
It is this term that describes a "hands off" form of capitalism where the government does not intervene in the economy
What is laissez-faire?
This is a measure of how much quantity demanded responds to a change in price
What is elasticity of demand (or elasticity)?
In order to determine the health of an economy over several years, we have to look at the total dollar amount of goods and services produced by a country in different years while adjusted for inflation called this
What is real GDP?
This is when you move business operations to a foreign country to reduce costs
What is offshoring?