Factors of Production
Human effort in production
Labor
A situation that occurs when supply is greater than demand.
Surplus
If egg prices rise dramatically, consumers are most likely to buy _________ like tofu or other proteins.
Substitutes
A _________card allows you to borrow money and pay it back later.
borrow
Rewards or penalties that motivate people to act in certain ways.
Incentives
Tools and machinery used in production
Capital
Goods that can replace each other, such as butter and margarine.
True/False
Paying only the minimum amount on your credit card bill is not the best way to manage your debt.
Government payments to farmers is an example of......
subsidies
The way a society organizes the production, distribution, and consumption of goods and services.
Economic System
Natural resources
Land
Goods that are often consumed together.
Complementary
As price increases, quantity supplied ________
increases
If a product experiences a shortage, what will likely happen to its price?
Takes money directly from your checking account.
Identify opportunities, innovate, and take risks to create new products or businesses.
Entrepreneurship
tangible items, products, or resources that satisfy human wants, provide utility, and are scarce.
goods
What happens at the equilibrium point on a supply and demand graph?
Supply and demand meet
What happens to the demand for a good when its substitute's price increases?
It increases
Who will receive the final products? → For whom to produce? What goods and services will be created? → What to produce? How will resources be used efficiently? → How to produce?
Economic Question
The government controls the factors of production in a _______ economy
Command
The value of the next best alternative given up when making a choice.
Opportunity Cost
As price decreases, quantity supplied __________
decreases
What happens to the supply of a good when new technology reduces production costs?
It increases
What typically happens to the price of a good when demand increases?
It increases.