Basic Terms
The study of how people make choices when resources are limited.
What is economics?
The amount of a product consumers are willing and able to buy.
What is demand?
When the general prices of goods and services increase over time.
What is inflation?
You have $10 and can buy either lunch or a movie ticket. You choose the movie. Lunch represents this economic concept.
What is opportunity cost?
Mr Nahk's favorite show
The Office
Something necessary for survival, such as food, water, or shelter.
What is a need?
The amount of a product producers are willing and able to sell.
What is supply?
The institution that accepts deposits and makes loans to consumers and businesses.
What is a bank?
A new gaming console sells out immediately because thousands of people want one but stores have very few available.
What is scarcity/a shortage?
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Something you would like to have but do not need to survive.
What is a want?
The amount of product released is limited but it is in high demand. This happens to the value
The value goes up
When someone is willing and able to work but does not currently have a job.
What is unemployment?
A popular sneaker normally costs $150, but stores have too many pairs left. Economically, sellers are likely to do this to the price.
What is lower the price?
Niners
The condition that exists because people have unlimited wants but limited resources.
What is scarcity?
A situation where consumers want more of a product than producers have available.
What is a shortage?
A period when economic activity declines significantly for an extended period.
What is a recession?
A drought destroys a large portion of the country's orange crop. Assuming demand stays the same, this will most likely happen to orange prices.
What is prices will increase?
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The value of the next-best alternative you give up when making a decision.
What is opportunity cost?
If a product has a lot of inventory but not alot of people want it. What happens to the value?
The value goes down.
The total market value of final goods and services produced within a country during a given period.
What is Gross Domestic Product, or GDP?
A company invents technology that allows it to manufacture twice as many phones at the same cost. Assuming demand stays the same, this happens to supply.
What is supply increases/shifts right?
What school he came from
Thomas Jefferson