Vocab
People have unlimited wants and needs but resources are limited. Therefore, people have to make choices.
We call this _______?
Scarcity
What is unlimited and endless in economics?
Wants and needs
Which type of economy does the United States have?
Mixed Economy
What is limited in economics?
Resources
Samantha goes to sleep at night after a long day of fishing for her village. Tomorrow she will do it again just like her parents before her.
Which type of economy is this?
Traditional
What is the term for "the amount of a good or service that consumers are willing and able to sell at a certain price?"
Supply
Provide 3 examples of natural resources.
Oil, trees, coal, water, wind, solar, natural gas
When customs are passed down from generation to generation and everyone works together to benefit society, which type of economy is this?
Traditional Economy
Name three examples of capital resources.
Factories, plastic, money, machines, fabric, ovens
A student spends three hours and $20 at the movies the night before an exam.
What is the opportunity cost?
Missed time studying and could have spent that money on something else.
What is the term for "the use of goods and services?"
Consumption
When you make a choice, what is the term that describes what you are giving up when you make that choice?
Opportunity cost
Provide an example of a traditional economy.
Tribes, Native Americans, Amish, etc.
Which two factors determine the price of goods?
Supply and demand
Mrs. Shilo needs more money to pay for the luxurious lifestyle that her dogs have become accustomed to. She takes a part-time job at a restaurant.
Which type of economy is this?
Mixed
1. natural
2. human
3. capital
4. entrepreneurial
"New study proves that cucumbers can be used to cure the common cold."
If this were true, what would happen to the price and was this caused by supply or demand?
Price- Would increase
Caused by an increase in demand
What is the difference between a free-market and command economy?
Command: Government controls/owns factors of production.
"Rare disease caused 50% of chickens to be unable to lay eggs."
If this were true, what would happen to the price of effs and was it caused by supply or demand?
Price- Price of eggs would increase
Because supply of eggs went down.
"Martins has too much milk."
What happens to the price of milk? Is this caused by supply or demand?
Price- decreases
Caused by too much supply
What is this referring to?
Everyone who wants to sell at that price can sell and everyone who wants to buy at that price can buy.
Equilibrium Price
Which law is this?
Consumers will buy more of a good or service at lower prices than higher prices?
Law of Demand
What are three examples of things that make up the public sector?
public schools, roads, defense, police, fire, mail service, parks, etc.
Which law is this?
Producers will make more when they can sell at a high price and produce at a low price.
Law of Supply
During the former Soviet Union, Joseph Stalin was a communist dictator. Which type of economy did he run?
Command