Part 1 Unit 1
Define what a good is.
A material item that satisfies human wants and provides utility like food, clothing, and cars.
True or False...
The only time you have an opportunity cost, is when you spend money
False
demand studies the behavior of who?
Buyers.
Who does supply study?
Who is KC Chiefs Quarterback
Patrick Mahomes
coffee beans, lemons, and apples are an example of land, T or F?
What characteristic of a free Enterprise system is this?
Nike and Adidas offer similar shoes and sweatshirts with slight variations that each claim make their product better and unique.
competition
What is the law of demand?
As the price of a good or service decreases the quantity demanded increases and vice versa
What is the law of supply?
As the price of a good or service increases the quantity supplied also increases and vice versa.
what year was Jefferson High School built?
1958
What is scarcity?
The idea that the resources available are not enough to meet peoples wants/needs.
What is an opportunity cost?
The value of the next best alternative that you give up when you make a choice. What you sacrifice to acquire something else.
What does elasticity measure?
when supply decreases what direction does the supply curve shift?
to the left
What year was Michael McClure born?
2001
What it this?
When individuals pursue their own self interest they unintentionally contribute to the overall economic well being of society.
The Invisible Hand Theory
If quantity demanded changes when the price of a good increases the good is...
Elastic
What are the 2 parts that make up market equilibrium?
The equilibrium price and the equilibrium quantity
what fiscal policy is this?
following a study by the treasury department reporting high unemployment rates the government increases unemployment benefits providing a larger safety net to those without work
expansionary
Name the four factors of production...
1. Land
2. Labor
3. Capital
4. Entrepreneurship
What are the economic systems?
1. Traditional
2. command
3. market
4. mixed
What are the 6 demand shifters
1. future price
2. substitute goods
3. complementary goods
4. change in income
5. number of buyers
6. change in consumer taste
How do you find market equilibrium
on the schedule or where the two points intersect.
what is the federal reserve and what is its role in economy?
its essential bank of the United States and it helps manage the economy by controlling the money supply, regulating banks, and providing financial services.