Intro
What is economics?
The study of people and choices.
What is capital?
The stuff you need to make things.
What form of government has an open market?
Capitalism
what is demand?
The amount of product the public wants.
What is opportunity cost?
Whatever you give up to do something?
What is a surplus?
The simple state of supply outweighing demand
What form of government has private ownership with government incentives to serve the greater good?
Socialism
What is a substitute product?
An inferior product that can serve the same purpose.
Give one example of what macroeconomics looks at?
The whole nations...
output, unemployment, interest rates, government spending, or growth
What is the price of a good or service in relation to the prices of other goods and services
Relative Price
What form of government only works with a dictatorship?
Facism
What does GDP not account for?
Under the table profits
What are utles?
Utility value/ how much you enjoy it.
On a production possibilities curve give one example of a point and what it means. ex. what a point means under, on, or above the curve.
-Under: inefficient
-On: efficient
-Above: impossible given current capital
What form of government has some private ownership and some community ownership?
Communism
What is a recession?
Any two quarters where the GDP goes down.
What are incentives and how do they help?
A set of external(rather than intrinsic) motivators that explains people's choices. They can help solve problems without adding more resources. You just have to get the incentives right.
Which law states that the quantity purchased varies inversely with price. In other words, the higher the price, the lower the quantity demanded.
Law of Demand
What form of government does the USA have?
Capitalism
What is the term for the willingness to buy stuff regardless of price?
Price Elasticity