Behavioral Econ
Why do people often feel worse about losing $10 than they feel good about gaining $10?
Because of loss aversion
What is the study of how people and societies use limited resources to satisfy their needs and wants?
Economics!
What happens to the value of money when inflation occurs?
It decreases
What do we call the amount of a product that producers are willing to sell at a certain price?
Supply
What type of economic system is based on private ownership and free markets, where individuals make most economic decisions?
Capitalism.
Why do people sometimes stick with a choice or investment even when it's clearly not benefiting them, just because they’ve already spent time or money on it?
Because of the sunk cost
What do we call something that people want or need, like food, clothing, or phones?
A good
What do we call it when the prices of goods and services increase over time?
Inflation.
What do we call the amount of a product that consumers are willing and able to buy at a certain price?
Demand
What type of economic system is controlled by the government, where the government makes most economic decisions and owns most resources?
Socalism
What do we call it when people follow what everyone else is doing, even if they’re not sure it’s the best choice?
The herd mentality
What do we call the money people earn from working?
Income
If the price of groceries and gas keeps going up every year, what economic term describes this change?
Inflation.
What happens to the price of a product when demand is higher than supply?
The price increases
What type of economic system combines elements of both government control and private ownership?
Mixed Economy
What do we call it when people remember events that were surprising or emotional more than ordinary events?
The availability heuristic.
What do we call the cost of the next best alternative that you give up when making a choice?
Opportunity cost.
When inflation is high, what happens to the purchasing power of your money?
It goes down
What is the term for the point where the quantity supplied equals the quantity demanded?
Equilibrium price
In which economic system are traditions, customs, and beliefs used to make economic decisions, often seen in farming or small communities?
Traditional
What do we call it when people choose something just because it’s the first option they see?
The anchoring effect.
What do we call a situation where the total cost of producing one more unit decreases as a company makes more of a product?
Economics of scale
What is the term for the increase in the cost of living over time?
Inflation
If a new technology makes it cheaper to produce a product, what typically happens to the product’s price and quantity sold, assuming demand stays the same?
The price decreases and the quantity sold increases.
Which economic system allows individuals to own property and businesses but the government may still regulate or provide services to guide the economy?
Mixed economy