This is the study of how societies use resources given that they have to make choices in a world of scarcity.
What is economics?
These are resources or factors of production.
What are land, labor, capital, entrepreneurship
This is the only factor that causes movement on a curve.
What is price?
shelter, food, water, love
What are needs?
This occurs when deciding to add one more additional resource.
What is marginal thinking?
They supply labor.
What are employees?
These are guaranteed prices to farmers.
What is a price floor?
This occurs before government steps in to provide a necessary good or service.
What is a market failure?
Silly bands, Yugioh cards, fidget spinners
What are examples of trends?
This is the motivating force in the free market.
What is competition?
This occurs when customers can't find enough ripped jeans to purchase.
What is a shortage?
A wage floor for wages.
What is a minimum wage?
If you want to lower your costs you probably need to lower these.
What are variable costs?
The city beautifies your neighborhood by planting shade trees; your property value goes up. This is the result.
What are positive externalities?
In this factor, the price of one causes the demand of other to shift.
What are compliments?
This graphic shows alternative ways to use an economy's productive resources
What is a production possibilities curve?
This occurs when there are limited resources but unlimited wants.
What is scarcity?
The cashier at Home Depot loses his job because of a self checkout terminal.
What is structural unemployment?
This is the most highly valued choice given up in order to do something else.
What is opportunity cost?
This happens when the % change in quantity demand is greater than the % change in price?
Elasticity of Demand
A rightward shift of a supply curve occurs due to this.
What happens when supply increases?
The phenomenon where people's wants and needs are provided by the marketplace w/out govt intervention.
What is the Invisible Hand?
The point on the business cycle when the economy shrinks.
What is contraction?
Education, skill, productivity, derived demand
What determines the difference in wage rates?
What is the circular flow of economic activity?
This occurs when the additional product of labor decreases as # of workers increases.
What is the Law of Diminishing Marginal Return
This is the name of a good or service purchased when our income goes up.
What is a normal good?
What are the "Three Economic Questions?"
What should be produced?
How should it be produced?
For whom should it be produced?
This citizen always uses government services but never pays for them.
What is a free-rider?
This exists with a price floor.
What is a surplus of labor?