Scarcity & Choices
What is the economic problem of limited resources and unlimited wants called?
Scarcity
What law states that as price increases, quantity demanded decreases?
Law of Demand
A business owned by one person is called what?
Sole Proprietorship
Give one example of a public good (something provided by the governmnent.)
Defence, police, roads, schools, libraries, parks
What is the only food that never expires?
Honey
What must you give up when you make a choice?
Opportunity Cost
When supply increases, what usually happens to the price?
It decreases
Which market structure has only one seller?
Monopoly
Which type of tax takes a larger % from higher incomes?
Progressive Tax
What condiment was once sold as a medicine?
Ketchup
Name the three types of productive resources.
Natural, Human, Capital
What happens at equilibrium price?
Quantity supplied = Quantity demanded
What business stucture is a legal entity that is separate and distinct from its owners (shareholders), giving them limited liablity protection.
Corporation
If we have a deficit (annual shortfall) what happens to our debt?
Debt increases
What is the most stolen food item in the world?
Cheese
What economic system relies on custom and tradition?
Traditional Economy
Name one factor that affects supply.
Cost of imputs, technology, # of sellers, policies
The concept of two or more firms (businesses) tries to get people to buy their goods or services over the others.
Competition
What is one example of a negative externality?
Pollution, traffic, noise
What is the oldest soft drink in the U.S.?
Dr. Pepper
"Buy One Get One Free" is an example of what?
Incentive
Name one factor that affects demand.
Income, preferences, substitutes, expectations.
What effect does competition have on prices and quality?
Lowers prices, improves quality
How can government reduce negative externalities?
Taxing or regulating them
What was the first food eaten in space by an American?
Applesauce