Basic Economic Terms
Someone who buys goods and services
What is a consumer
Things that people would like to have but can live without
What are wants
The desire to have a good or service and the ability to pay for it
What is demand
The study of how we produce and distribute our wealth
What is economics
Which of the following is not a natural resource?
Oil
Coal
Water
Plastic
4. Plastic
The right of others to enter the same business ventures as you
What is competition
Food, shelter, water are considered this
What is a need
The amount of a good and service that businesses produce
What is supply
Economic system in which the government controls and sets prices
What is communism
Which of the following are capital resources?
trees, water, iron
workers, businesses, owners
machines, tools, factories
college educated employees
3. machines, tools, factories
When the demand for a good or service is greater than the availability of the good or service.
What is scarcity
Tangible things that you can buy or sell are considered to be
What is a good
When companies are willing to supply a greater quantity of goods or services at higher prices than lower is
What is the law of supply
In this type of economy, you will inherit your job from your family. If your father was a rice farmer, you will also continue to farm rice as well.
What is A traditional economy
The unemployment rate IS
people want more good and services than can be produced
some people are wealthy while others are poor
the percentage of people who do not have jobs
individuals and government creating jobs
3. the percentage of people who do not have jobs
A person who creates their own product or owns their own business
What is an Entrepreneur
Actions done for others in exchange for payment
What are services
The quantity demanded of a good or service is greater at lower prices than higher is
What is the law of demand
The economic system in which individuals/businesses decide what, how, and how much will be produced/sold
What is capitalism
In economic terms, producers are
business owners, managers and workers.
what is given up, or lost, when a decision is made
there is plenty of everything for everyone
individuals and government do not make the right choices
1. business owners, managers and workers.
Value of the thing given up when a choice is made between two things
What is opportunity cost
Something that comes from the earth
What are natural resources
The market price where the quantity of goods supplied is equal to the quantity of goods demanded
What is equilibrium price
A system that protects private property and allows a level of economic freedom in the use of capital, but also allows for governments to interfere in economic activities in order to achieve social aims.
What is a Mixed Economy
How can we define consumer sovereignty?
customers have little say in purchases made
customers cannot exchanges goods
customers can exchange what they value less for what they value more (customer is always right)
producers compete against consumers
3. customers can exchange what they value less for what they value more (customer is always right)