Definitions
This is the amount of a good or service that would be bought at a given price.
This is the happy meeting of price and quantity, supply and demand.
What is (market) equilibrium?
This coordinates action in a free market.
What are prices?
According to the Law of Demand, if the price increases, demand will ____________.
What is decrease?
The Garden of Eden was an economy.
True/False.
What is false?
This is the what you have to go without in order to acquire some product or service.
What is opportunity cost?
These are the three types of economies we've looked at.
What are Traditional, Command, and (Free) Market economies?
This economic feature is created by a price floor.
What is a surplus?
If supply broadly increases, this will happen to the product's price in the market.
What is decrease?
All needs actually exist within a given ____________.
What is range?
This economic reality is the reason everyone cannot have a beachfront home.
What is scarcity?
These are the four factors of production.
What are land, labor, capital, and entrepreneurship?
This prevents prices from rising above a certain level.
What is a price ceiling?
According to the Law of Supply, price and quantity have a _____________ relationship.
What is direct?
The price one producer is willing to pay for a given ingredient is the price every producer is ____________ to pay.
What is required/forced?
This is the definition of economics.
What is the study of how people or societies use limited resources to satisfy unlimited wants?
If an item is resistant to price changes and demand will not change drastically over time, it is considered a(n) _____________ good.
What is elastic?
This is an alternative to a given product or service that consumers can acquire.
What is a substitute (good)?
These types of goods are difficult to change the supply of, making them very inelastic in terms of supply.
The contrary to these would be very supply elastic - manufactured goods.
What are natural resources?
This country was subject to some of the worst inflation in world history due to land confiscation, leading to price ceilings and black markets.
What is Zimbabwe?
This template/blueprint shows the movement of goods and services around an economy.
What is the Circular Flow Model?
In general, shortages will cause prices to __________, while surpluses will cause prices to ____________.
What is increase and decrease?
If there is a shortage of a product and demand isn't/cannot be met, this unfortunate reality will end up developing.
What is a black market?
The reality that each additional purchase of a product or service by a given consumer will be less satisfying than the previous purchase is called this.
What is the Principle of Diminishing Marginal Utility?
These are two of the four reasons a good might be elastic.
What is:
It's a luxury item///It represents a large portion of the family income///There are plenty of substitutes///and the item is durable?