Basic Economics
The study of way society uses its scarce resources to satisfy its unlimited wants and needs.
What is Economics???
The Low point in the Business Cycle
Trough or depression
The price has a major impact in quantity demand
What is Elastic Demand
How much of a good Producers are willing and able to sell at each possible price during a given period of time.
WHAT is supply?
The 3 basic economic questions that every economic system must answer.........
What to produce
How to produce
For Whom to produce..
The Gap between limited resources and unlimited wants for good and services...
What is Scarcity...
At least 6 months of declining GDP...
What is a Recession?
This describes a minor change in quantity demanded when the price changes. The "Price Effect" causes little little or no impact on the quantity demanded. Usually a necessity.....
What is Inelastic Demand?
The higher the price, the greater the quantity supplied. The lower the price, the smaller the quantity supplied by producers.
What is the Law of Supply?
This country is the largest trading partner with the USA....
What is
C aye
N aye
D aye
The factors of production (4)
What are land, labor, capital and Entrepreneurship?
Unemployment is low and consumer confidence is high. GDP is on the rise..
What is a Recovery/Prosperity or Expansion?
Buildings, equipment, machinery, and transportation systems used to produce goods and services.
What are Capital Goods?
name 2 of the 6 factors that cause a change or shift in supply?
What is change in price of resources, productivity, technology changes, expectations, number of sellers, subsidies
The point at which the demand for a product or service is equal to the supply of that product or service.
What is Equilibrium?
Total Consumer Spending
Investment (both business and consumer) (Homes)
Government Spending (roads, military, FD, schools,etc...)
Net Exports = Imports minus Exports
What is GDP?
The Average cost of 400 consumer products (Retail)
What is the Consumer Price Index?
Four factors that determine the elasticity of demand
What are Luxuries and necessities, percent of income, time, number of substitutes
Government payments to encourage or protect a certain type of economic activity. This government action lowers the cost of production and encourage producers to stay in the market.
What are Subsidies?
When quantity demanded is higher than quantity supplied.
What is a Shortage??
The father of modern economics?
Who is Adam Smith
Rising prices that can cause a decline in consumer spending and can lead to a recession
What is INFLATION
The measurement of how the change in price affects the quantity demanded of a product.
WHAT IS ELASTICITY OF DEMAND
This indicates how responsive (changes in quantity) producers are to a change in price.
What is elasticity of supply?
This is the value of the next-best alternative when a decision is made; it's what is given up, when you make a choice between two or more alternatives, the next best choice is known as the ______________.
Opportunity Cost