Factors of Production/Economics Basics
Equipment or tools used to produce a product are referred to as _______
Capital
Having not enough of a good or service is called a
Shortage
when the price of goods and services goes up
Inflation
This economic system promotes competition and innovation
Capitalism or market economy
Which Market Structure is defined by a single producer?
Monopoly
What does the CPI report measure?
Inflation
According to the law supply when prices increase for a good or service, producers will produce __________
more
The central bank for the US is called
The FED or Federal Reserve
Growing Gaps Between Rich and Poor is a disadvantage of which economic system?
Market or capitalist
Which market structure includes only a few suppliers of a good or service?
Oligopoly
The person or entity that take on the risk in a business
Entrepreneur
Which is a tax on foreign goods?
Tariffs
What percent does the FED try to keep inflation at?
2
The government gets most of this from taxes.
Revenue
_________ is a situation defined by an inefficient distribution of good.
Market Failure
Who is considered the father of Capitalism?
Adam Smith
State of balance between supply and demand keeping prices stable
Equalibrium
If inflation is high the fed will likely do what to interest rates?
lower them
The way the the Maasai tribe lives and uses cattle in their economy demonstrates which economic system?
Traditional
What is it called when larger businesses buy or merge with their competitors reducing competition?
Consolidation
Economic systems look to deal with the fundamental problem of what?
scarcity
If a good or service's demand changes a lot when its price is changed it is considered to be demand _______
elastic
What does BLS stand for?
Bureau of Labor Statistics
Who answers the basic economic questions in a command economy?
Central authority or government
This answers the basic economic questions of a market economy?
Supply and demand