Factors of Production
What are the 4 factors of production?
Capital, Land, Labor, Entrepreneurship
This term describes how much quantity demanded changes when price changes.
What is elasticity of demand?
This is what GDP measures in a country.
What is the total value of all final goods and services produced within a country in a year?
This law states that as price goes up, quantity demanded goes down.
What is the law of demand?
This is the point where supply equals demand.
What is equilibrium?
Which factor of production does water fall under?
Land
If the price of pizza goes up 10% and quantity demanded drops 20%, demand is described as this.
What is elastic?
This type of GDP is adjusted for inflation.
What is real GDP?
When demand for a product increases, the demand curve shifts in this direction.
What is right?
A legally set minimum price, like the minimum wage.
What is a price floor?
A tractor is which factor of production?
Capital
Goods with many substitutes tend to have this kind of elasticity.
What is elastic demand?
Goods counted in GDP must be this type
What are final goods?
Two goods that are often bought together, like chips and salsa, are called this
What are complements?
When the price is above equilibrium, this happens in the market.
What is a surplus?
A cook in a restaurant is which factor of production?
Labor
This type of good typically has very inelastic demand.
What are necessities?
This part of GDP includes machinery, tools, and new buildings
What is investment (I)?
New technology usually causes supply to shift in this direction.
What is right?
An economy where the government makes all production decisions.
What is a command economy?
Give me an example of each factor of production
Answers will vary as long as they are correctly identified it's correct.
When total revenue remains the same after a price change, demand is considered this.
What is unit elastic?
This happens when nominal GDP rises but real GDP does not.
What is inflation?
A supply curve shifts left when this increases for producers.
What are production costs?
This system answers the three economic questions through voluntary exchange.
What is a market economy?