Intro to Economics
When the demand for a good or service is greater than the availability of the good or service.
This is having a limited quantity of resources to meet unlimited wants.
what is scarcity?
Something done in exchange for money
What are services?
An economic system in which the government makes all the economic decisions and sets all the prices and wages
What is a command economy?
Definition of Gross Domestic Product (GDP)
Gross Domestic Product (GDP) represents the total monetary or market value of all the finished goods and services produced within a country's borders. It is a comprehensive measure of economic activity.
The number of goods and services that are available.
What is supply?
_______________ is the most valuable alternative, or trade-off, you forgo when you make a decision
Opportunity Cost
The study of how people meet their needs and wants
What is economics?
The main types of economic systems
What is
1) traditional economy
2) command economy
3) market economy
4) mixed economy
This form of trade occurs when goods are brought into a country to be sold.
What is an import?
Refers to how many people want those goods and services.
What is demand?
What is the term for people or businesses that buy or consume products and services.
What is a consumer?
DOUBLE JEOPARDY! A set of rules about how parts of the economy should function
What are regulations?
An economic system where all decisions are based on customs, traditions, and beliefs.
What is a traditional economy?
____________________ arises when there is an increase in the costs of production for businesses.
Cost-Push Inflation
The ____________ captures how many goods a supplier is willing and able to offer to the market at a certain price.
The Supply Curve
Name one of the four factors affecting Scarcity and Choice
Population Growth
Natural Disasters
Technological Advancements
Government Regulations
Name two of the seven main measurements of Economic Growth
GDP / Consumer Price Index (CPI) / Unemployment / Interest Rates / Consumer Spending / Savings and Investment Rates / Infrastructure Development
DOUBLE JEOPARDY! Name one of the economic systems that fits into a democratic government?
Mixed or Market
This form of inflation occurred when excess demand pulls prices upward.
Demand-Pull Inflation
A __________________ is a graphical representation showing the relationship between the price of a good and the total quantity of that good demanded by all consumers in a market.
Market Demand Curve
The _____________________ is a graphical representation of the various combinations of two goods that an economy can produce.
Production Possibilities Curve (PPC)
A reason or reward that motivates people to behave or do something in a certain way.
What is an incentive?
An economy where both the government and individuals play roles in production and consumption
What is a mixed economy?
How do you calculate the Unemployment Rate?
The unemployment rate is calculated as the percentage of the labor force that is unemployed: (Number of Unemployed / Labor Force) x 100.
This term refers to the point when the Demand and Supply Curves cross.
Market Equilibrium