Basics
The highest valued option not chosen
Opportunity cost
The island in Moana operates using this type of system
Traditonal
The willingness AND ability to produce a good or service
Supply
What si the shape of the demand curve
Downward sloping
the general rise in prices of goods and services over time, which reduces the purchasing power of money
Inlfation
unlimited wants and limited resources creates this
Scarcity
In this system the government makes all major economic decisions—what to produce, how to produce, and for whom.
Command
This willingness AND ability to buy a good or service
Demand
What is the shape of the supply curve?
Upwards sloping
Taxes on imports
tariffs
The science of choice
Economics
In this system decisions are driven by supply and demand. Individuals and businesses decide what to produce and buy.
Market
According to the law of demand- when prices decrease, QD ________..
Increases
When beef prices rise people tend to buy cheaper chicken. what is the name of this effect?
Substitution
The federal reserve's dual mandate main goals are the following
Price stabilization and maximum employment
giving up one thing to get something else
trade-off
this system combines elements of market and command systems. Government regulates some areas while allowing private enterprise.
Mixed
According to the law of supply- when Prices increase, QS ______
Increases
When demand for hot dogs increase so does the demand for mustard.
Compliment effect
An increase in demand would shift the curve in this direction
right
The 3 basic economic questions are- What to produce, how to produce, and ________
For whom to produce
This is the system the USA operates in
Mixed
The point where supply equals demand.
Equillibrium
As you consume more units of a good, the additional satisfaction (utility) from each extra unit decreases. this is refered to as The law of _____________________
Diminishing marginal utility
many sellers/no barriers to entry/price taker is this type of market structure
perfect competition