The study of unlimited needs and wants with limited resources.
What is Economics?
100
The purpose of the free enterprise system
What is to give people the freedom to make choices
100
This law has an inverse relationship
What is the law of demand?
100
This is what happens when supply and demad meet on the graph
What is equilibrium?
100
The government of a country must make a decision between increasing military spending and subsidizing wheat farmers. This kind of decision is a
What is guns and butter decision?
200
This frontier shows the maximum amount that a country can produce
What is a Production Possibilities Frontier?
200
In this type of economy, the Government answers the three basic questions
What is a command/centrally planned economy?
200
When the demand curve shifts to the right it indicates this
What is an increase in demand?
200
The law of supply states that at higher prices, producers want to produce _______________, while at lower prices, producers want to produce ___________.
What is more and less?
200
Real GDP reflects output more accurately than nominal GDP by using constant prices.
What is why would an economist use real GDP rather than nominal GDP to measure growth?
300
Any resources that are made by humans and used to create other goods and services
What is capital?
300
In this type of economy, the government requres competition to protect consumers
What is a mixed/modern economy?
300
This has a complementary relationship
What is the law of supply?
300
Wages will remain level because firms want to keep supplies even and costs under control.
What is how can competition in a scarce labor market affect wages?
300
How a society answers the three economic questions about the production and consumption of goods and services
What is where does a society place it's economic and social goals?
400
What a person gives up by making an economic choice is called this
What is trade-off?
400
In a free market economy, the factor market involves this type of exchange
What is Households purchase factors of production from firms?
400
If the cost of production increases, this will happen to supply
What is supply will increase?
400
The money an investor receives above and beyond the money initially invested is called this
What is a return?
400
This is what happens when two giant automakers, Chrysler Corporation and Daimler-Benz, merged to form a single corporation
What is a horizontal merger?
500
All goods and resources are scarce
What is scarcity?
500
What to produce?
How to produce?
For whom to produce?
What are the three basic economic questions?
500
availability of substitutes
the good’s relative importance
the good’s price range
What is factors that do NOT effect elasticity?
500
The government of a country must make a decision between increasing military spending and subsidizing wheat farmers. This kind of decision is a
What is a guns and butter decision?
500
This is how the Federal Reserve System improved the banking industry in the twentieth century
What is served as a central bank with the power to lend to other banks in time of need?