The condition that exists because resources are limited, but needs and wants are almost limitless
What is scarcity
100
The maximum legal price that can be charged that can result in shortages.
What is price ceiling
100
Profit maximization is when _____ equals _____
What is marginal revenue = marginal cost
100
The cost of the next best alternative.
What is opportunity cost
100
Situation where quantity supplied is greater than quantity demanded at a given price
What is surplus
200
4 types of economies
What is traditional, command, market, mixed
200
The economic questions facing all nations.
What is what, how, for whom
200
GDP formula
What is C+I+G+(X-M)
200
4 factors of production
What is land, labor, capital, entrepreneurship
200
3 tools for monetary policy
What is reserve requirement, open market operations, discount rate
300
2 factors affecting quantity demanded
What is the income effect and substitution effect
300
A country’s ability to produce a given product relatively more efficiently than another country by doing it at a lower opportunity cost
What is comparative advantage
300
A decrease in supply, holding demand constant, will cause
What is higher prices and a smaller quantity sold
300
This shows the maximum feasible combinations of two goods or services that society can produce, assuming all resources are used in their most productive manner
What is production possibilities curve
300
4 types of business forms
What is sole-proprietorship, partnership, corporation, franchise
400
Formula for marginal cost
What is change in total cost / marginal product
400
7 factors that change supply
What is
Cost of resources
Productivity
Technology
Taxes and subsidies
Expectations
Government regulations
Number of sellers
400
3 categories of elasticity
What is elastic, inelastic, unit elastic
400
Formula for marginal product
What is the change in total product
400
7 factors that change demand
What is
Consumer Income
Consumer Tastes
Substitutes – Coke & Pepsi, Beef & Chicken
Complements – Hamburger (bun, ketchup)
Expectations
Number of Consumers
500
Formula for marginal revenue
What is change in total revenue / marginal product
500
If the Fed raises the reserve requirement, the money supply will _____
What is contract
500
4 types of market structures
What is perfect competition, monopolistic competition, oligopoly, monopoly