Vocabulary
When you combine different resources to make something, this is called ______________?
Production
In which type of economy does the government regulate business the most?
Command
What type of business ownership involves two or more people taking all the risk?
This type of card uses funds directly from the owner's bank account.
Debit
The amount of consumers willing to consumer a product or service is called __________?
Demand
The use of goods and services.
Consumption
Dax works for Amazon. What sector do they work for?
Private
What type of business ownership has just one person taking all the risk?
Sole Proprietorship
This type of card utilizes bank funds on loan which will need to be paid back later.
Credit
This is the exact place where supply and demand meet - it is the perfect price where everyone who wants to buy a product can.
Equilibrium price
When we have limited resources but unlimited wants/needs, this causes __________?
Scarcity
Which type of economy do most countries around the world align with?
Mixed
Which type of business ownership means that the company acts as a legal entity?
Corporation
How do banks encourage people to save their money using their business?
Pay interest on deposits
What determines price?
The interaction of supply and demand
When you choose to spend time watching a movie instead of exercising, what is the opportunity cost?
The mental/physical benefits of exercising
In a mixed economy, who makes decisions for the public sector? Who makes decisions for the private sector?
Public- Government
Private- Individuals/businesses
A person who takes risks to sell goods and make profits is called?
Entrepreneur
A decrease in your purchasing power, generally reflected by an increase in the price of goods and services is called ____________?
Inflation
The idea that the desires and needs of consumers control what companies will produce. Consumer is
King."
Consumer Sovereignty
2. Human
3. Capital
4. Entrepreneurial
List three possible benefits of having a free market economy.
- Competition
- Lower prices
- Better quality products
- More choices
- Individual freedom
- Profits
When shareholders receive a portion of the profits, we call these _____________?
Dividends
Which percentage range indicates a healthy inflation rate?
1-3%
Microsoft recently released a new line of VR Goggles. Retailers could not keep them on the shelves because they are extremely popular. The supply is very low and the demand is very high. What will Microsoft do to the price?
Raise the price