Economics Basics
The study of how people satisfy unlimited wants with limited resources.
What is economics?
States: When the price of a good rises, the quantity demanded usually falls.
What is the Law of Demand?
This market with only one seller is called this
What is a monopoly?
The total value of all goods and services produced in a country in a year.
What is GDP?
A sustained increase in the general level of prices
What is inflation?
The cost of the next best alternative you give up.
What is opportunity cost?
States: When the price of a good rises, the quantity supplied usually rises
What is the law of Supply?
A market with many sellers offering similar but slightly different products is called this
What is monopolistic competition?
You buying a new car is under this sector of GDP
What is Consumption?
The percentage of the labor force that is willing and able to work but can't find a job
What is the unemployment rate?
Land, labor, capital, and entrepreneurship are known as?
What are factors of production?
The point where quantity demanded equals quantity supplied
What is the Equilibrium Price?
A market where many sellers offer identical products is called this:
What is perfect competition?
GDP adjusted for inflation
What is real GDP?
Unemployment that occurs when workers are between jobs or entering the workforce
What is frictional unemployment?
This type of economic system is based on tradition and customs.
What is a traditional economy?
A good that has many substitutes has this, so if prices go up demand drops dramatically (unlike gas...)
What is price elasticity?
A market with a few large sellers is called this
What is an oligopoly?
A long-term increase in a country's production of goods and services is called this
What is economic growth
Decisions made by the government to increase/decrease spending and taxes to fight inflation and encourage economic growth
What is Fiscal Policy?
A situation where unlimited wants exceed limited resources is called this
What is scarcity?
If the government sets a maximum price below equilibrium, it is called this
What is a price ceiling?
When companies agree to set prices or limit production to increase profits
What is collusion?
Lanier County building a new school would be counted as what sector of GDP?
Government
The central bank of the US that carries out Monetary Policy
What is the Federal Reserve?