Basics
what is scarcity?
wants/ needs and resources.
How do binding contracts help provide stability in our economy?
Holds people accountable/ is reliable.
Demand studies the behavior of?
Buyers.
Trisha gets a raise. Her demand for better food increases.
Normal goods
If Starbucks raises their prices because they believe it'll increase their revenue would they be successful?
No
What does define goods mean?
something a business can sell.
What is a free Enterprise economics system?
When you can buy/ sell whatever you want without the government involved.
what two things must be present in order to meet the economic definition of demand?
willingness and ability.
Word goes around that gas prices will go up soon people go to fill their tanks ASAP!
consumer expectation.
if quantity demanded does not change when the price of a good increases, the good is elastic or inelastic?
Inelastic.
What are the 4 factors of production?
Land, Labor, Capital, Entrepreneurship.
what are 3 basic economic questions that every society must answer?
what does we need/want?
how do we get/make it?
who gets it?
what causes the change in quantity demanded
Money.
Jefferson high school plans to hire 100 more staff. The demands for homes in cedar rapids increases.
change in # of consumers.
If quantity demanded changes the price of a good increases, the good is elastic or inelastic?
elasatic
what is opportunity cost?
The cost of something you give up to receive.
what characteristic is it when Nike and Adidas offer similar shoes and sweatshirts with slight variations that each claim their product is better and unique?
Competition.
what causes a change in demand shifters?
when multiple products are mentioned.
what is a substitute good?
A product that is seen as the same or similar to another product.
what does elasticity mean?
How responsive one economic variable is to changes in another.
Economics is mainly the study of?
How individuals, businesses, and societies make choices.
Who is the father of economics?
Adam Smith.
what is law of demand?
price goes up, QD goes down.
A documentary comes out about a makeup brand who tests on animals. People stop buying from this company.
change in preference.
what are the three factors that influence whether or not a good is elastic or inelastic?
price
supply
demand