Economics
Refers to the economic problem of having limited resources with unlimited wants
What is scarcity
Things that people must have to survive
What are needs
Considered the father of modern economics and capitalism
Who is Adam Smith
The direct trading of goods and services between people without the use of money
What is barter
A store receives 1000 rolls of toilet paper and 200 people need it. What is the economic term for the amount of product?
What is a surplus?
Someone who buys goods and services
What is a consumer
Someone who sells or makes goods
What are producers
When a producer makes too much of a good for consumers
What is a surplus?
Adam smith believes this will happen when business are allowed to compete with one another in a marketplace
What is a price drop
When producers do not or cannot make enough of a good for the consumers
What is a shortage?
This is the social science that studies the production, distribution, and consumption of goods and services.
What is economics?
The study of how individuals, governments and business make choices about allocating scare resources
What is economics
The effort people contribute to the production of goods and services
What is labour
the idea that self-interest of suppliers would naturally meet the needs of consumers.
What the invisible hand?
This is an organisation engaged in the trade of goods and services to consumers.
What is a business
What is the study of economics concerned with the single factors and decisions of individuals.
What is Micro economics?
When an item leaves a country it is called this.
What is an export?
This is the book written by Adam Smith that outlines free market economics
What is the wealth of nations
This person sets the prices for products in a free market economy
What the producer?
The idea that states when prices go up consumers will purchase less of it.
What is the Law of Demand?
Under this system the government and guilds controlled trade by setting prices, wages, and taxes
What is the mercantilism?
The economic system in which individuals/businesses not the government decide what, how, and how much will be produced/sold
What is a free market economy
Change in cost of items over a period of time.
What is inflation?
The idea stating that when price goes up so does the amount producers will make
What is the Law of supply?
The point at which producers and consumers agree on a price
What is equilibrium