Economic Basics
The wants of a person or society may be unlimited, but the resources available to satisfy those wants are limited
What is scarcity?
The amount customers are willing to pay.
What is demand?
A market with many sellers offering identical products and no control over price.
What is perfect competition?
A business owned by two or more people who share profits and responsibilities.
What is a partnership?
How many economic utilities are there?
What is 5?
A windmill is an example of this factor of production.
The law states that as price increases, quantity increases.
What is the law of supply?
A market with many sellers offering similar but differentiated products.
What is monopolistic competition?
The acronym LLC breaks down into ownership type.
What is a limited liability company?
Utility that provides information to help customers make decisions
What is information utility?
This economic question is used to help decide if more employees should be hired to make products.
What is How should the goods and services be produced?
Occurs when prices increase and supply is less than demand
What is a shortage?
This market structure is represented by cell phone and airline companies.
What is an oligopoly?
This ownership type has limited liability, is double taxed, and can easily transfer ownership.
What is a corporation?
Cash, Debit card, Credit card, Affirm are examples of this utility.
What is possession utility?
Kayla decides to buy new sneakers from StockX for $200. The opportunity cost of the decision to purchase the sneakers is _____.
What is purchase another item for $200?
This curve shows the relationship between price and quantity demanded, decreasing as price is lowered.
What is the demand curve?
This market structure controls and sets prices with no competition.
What is a monopoly?
This type of ownership is best if I want to offer pet grooming service from the comfort and convenience of customers’ driveways. I need a mobile van to start the business. As I build my business, I’d like to add additional vans around the city.
What is a sole proprietorship?
Old Navy is adding two new colors to its jackets. This adds to which utility?
What is form utility?
An economy where the government answers all 3 economic questions.
What is a command economy?
Draw and label a supply and demand graph with equilibrium.
This force in a free enterprise system drives innovation, efficiency, and consumer choice.
What is competition?
Two friends want to open a fitness center together but also want their personal assets protected if the business is sued. This type of ownership would be best.
What is a LLC?
McDonald’s offers the Shamrock Shake during St. Patrick’s Day. This is an example of _____________ utility.
What is time utility?