Unit 1
This type of economy controls the distribution of all factors of production.
Command
The Law of Demand
This type of business has the most unlimited liability
Sole Proprietorship
When there is less of a good than people want
Scarcity
A cost that a business cannot predict and may change month to month.
Variable Cost
Name the four factors of production
Land, Labor, Capitol, Entrepreneurship
Law of Supply
As price increase, quantity supplied increases
Who owns corporations?
Stockholders
the result of choosing one alternative over another.
Opportunity cost
A business model that has total control of a product.
Monopoly
A point outside/to the right of the PPC would be __________.
Impossible
If a product went viral on Tik Tok, which factor that shifts demand would we cite?
Taste & preference
Oligopoly
Define inelastic demand
buyers are not responsive to a change in price (not flexible, will still buy with a price change)
What do businesses provide to households in the circular flow model?
Goods and services
A point underneath/below the PPC would be ____________.
Inefficient
If the prices of airpods increased, which of the following would occur according to the law of supply?
Increase QS
What is the major strategy used by monopolistic competition to differentiate products?
Advertisements
What is equilibrium?
the price and quantity point at which market supply and market demand for an item are equal.
What type of business models do we see collusion in?
Oligopolies
In the Circular Flow Model, what do households provide what??
Labor and capitol
If the cost of producing airpods declines, what is likely to happen in the market for airpods?
The supply curve will shift right.
When do we see profit maximization?
MR = MC
What is a fixed cost?
A cost a business can expect to be consistent like rent
What is the formula for profit?
Total revenue- Total Cost