Terms
Factors of Production
Government Stuff
Theory in Action
More questions to reward your initiative in studying
100
This is the basic fact of economic life, and implies that choices have to be made.
Scarcity
100
The buildings, structures, machinery, and tools (like saws and trucks) used in the production process are called this
Capital goods
100
Limited government involvement distinguishes this from the pure market model.
US Economy/Free-Enterprise System
100
When quantity supplied is equal to quantity demanded, this situation exists
Equilibrium
100
If a good can be made quickly, inexpensively, and using few resources (like a Cherry Pie) it usually has this type of supply.
Elastic
200
In capitalism, these people can make what they choose, as long as no laws are broken.
Producers
200
Trees, water, and sometimes even air are considered this.
Natural Resources
200
A good or service that is consumed by all members of a group, usually arranged by the government and payed for through taxes, is called this
A public good
200
Motivation to seek this is the most important incentive in a market or free enterprise economy
Profit
200
Limitations of the price system are sometimes referred to as this
Market Failures
300
Acting with this in mind results in goods people want being produced at prices they are willing to pay.
Self interest
300
When human resources are given more advanced capital resources, like trading hammers for nail guns, the supply of their product shifts this direction.
to the right
300
What does setting a price ceiling on a good or service usually cause in the market?
Shortage
300
This idea says the higher a price the seller receives for their product, the more they will want to sell.
Law of Supply
300
"Living off the land and slow to change" are two features of what type of economic system?
Traditional System
400
Lumber and nails, peas and carrots, peanut butter and jelly are all examples of
complementary goods
400
Land developers, construction workers, and teachers are examples of this (REMEMBER the category!)
Human resources
400
An economic system in which the basic economic questions are answered by a government planner is called this.
A command system
400
People are less responsive to the price changes of this type of good, often regarded as necessities like razors, shoelaces, and water.
Inelastic Goods
400
More competition in a market tends to do what to supply?
Increase it
500
This is the economic term for what you incur when making a decision, and it is different for various people.
Opportunity Cost
500
Dave Thomas, founder of Wendy's, is an example of a successful effort at this, as are many other business owners.
Entrepreneurship
500
The minimum wage is an example of what?
A price floor
500
This tends to happen to the price of a good when the supply of it is less than the demand for it
Price increases
500
A product's usefulness to someone is called this
utility
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