Basic Economics
Vocabulary
Give an Example
Supply and Demand
Random
100
Describe all three parts to the Factors of Production.
What is land, natural resources used to make goods and services. What is Labor, the effort put into making natural resources. What is Capital, any human made resource that is used to create goods and resources.
100
The study of how people seek to satisfy their wants and needs by making choices.
What is Economics
100
A product that is the same no matter who produces it. Please also provide an example.
What is a Commodity.
100
The point at which quantity demand and quantity supplied are equal.
What is Equilibrium.
100
The most desirable alternative given up due to a decision.
What is Opportunity Cost.
200
A phrase used to explain the trade-off that nations face when choosing whether to produce more or less military or consumer goods.
What is a "Guns or Butter" decision.
200
Deciding whether to do or use and additional unit of some resources.
What is Thinking at the Margin.
200
Someone who would not change to pay for a certain good or service but who gets the benefits of it anyway if it were provided as a public good.
What is a Free Rider.
200
When quantity supplied is greater than quantity demanded.
What is Excess Supply.
200
A good that consumers demand less of when their income increases.
What is a Inferior Good.
300
a believer in a free market, and this man wrote a book in 1776 about the wealth of nations.
Who is Adam Smith.
300
The total value of all final goods and services produced in a particular economy.
What is Gross Domestic Product (GDP).
300
Give an example of a Safety Net?
What is are government programs that protect people experiencing unfavorable economic conditions, and is a government aid to the poor.
300
A table that lists the quantity of a good that a person will but at a different price.
What is a Demand Schedule.
300
A market structure in which more companies sell products that are similar but not identical.
What is a Monopolistic Competition.
400
State the three economic questions.
What is 1. What goods and services should be made? 2. How should theses goods and services be made? 3. Who consumes these goods and services?
400
A level of production in which the marginal product of labor decreases as the number of workers increases.
What is Diminishing Marginal Returns.
400
Give an example of goods with elastic and inelastic supply.
What is Elastic: very sensitive to a change in price. Inelastic: not very sensitive to change in price
400
A graphic representation of a demand schedule.
What is a Demand Curve.
400
Factors that cause producers average costs per unit to fall as output rises.
What is Economics of Scale.
500
What effect does technology have on the economy?
What is new technology makes the economy more efficient.
500
The governments agency that insures customer deposits if the bank fails
What is Federal Deposit Insurance Corporation.
500
The ability to be used as, or directly converted to cash.
What is a Liquid Asset
500
Demonstrate with a drawing what a shift in the Demand Curve means.
see key
500
The combination of two or more firms competing in the same market with the same good or service.
What is a Horizontal Merger.
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