Principles of Economics
All resources are limited.
What is Scarcity?
Value of the most important thing you give up when you make a decision.
What is Opportunity Costs?
All economic decisions are made by the government and individuals.
What is a Mixed Economy?
Anyone who purchases a good or service.
Who are the consumers?
When the government does not like the price in a certain market so they pass laws requiring maximum or minimum prices.
What are Price Controls?
What you spend when you make a choice.
What is Costs?
A model for understanding the tradeoffs an economy must make when dedicating its scarce resources.
What is Production Possibilities Frontier or PPF?
All economic decisions are made by individuals and businesses, with no government regulation.
What is a Market Economy?
The willingness and ability of consumers to purchase a product at various prices within a specific time frame.
What is demand?
The maximum price for a good or service in a specific market.
What are Price Ceilings?
The outside edge or border.
What is Margin?
The PPF shifts to the _______ when the economy's production expands.
What is Right?
All economic decisions are made by the government, usually a dictator.
What is a Command Economy?
Any person or business selling a product.
Who are the Producers?
The minimum price for a good or service in a specific market.
What are Price Floors?
Something that motivates a person to act in a certain way.
What is Incentive?
The PPF shifts to the ________ when the economy's production declines.
What is Left?
Custom, ritual, and tradition determine what is produced, how it's made, and who consumes it.
What is a Traditional Economy?
The amount of a good or service that producers are willing and able to sell at various prices within a specific time frame.
What is supply.
When the government sets a maximum on how much landlords in a city may charge for rent.
What is Rent Control?
The difference between micro and macroeconomics are.
What is micro: how individuals, businesses, and households make decisions?
The PPF curve is usually _______ or _______ because not all resources are perfectly adaptable for producing each product.
What is Bowed or Curved?
The 6 major goals for economies are.
What is Economic Freedom, Economic Efficiency, Economic Equity, Economic Growth, Economic Security, Economic Stability?
When quantity demanded is greater than quatity supplied.
What is a Shortage?
When the government sets a minimum on how much employers can pay their employees hourly.
What is minimum Wage?