Causes Of Revolution
Define Economic Growth
The increase in economy's total production of goods and services. As production rises, jobs increase, income rises, spending increases, production rises.
Looking at whether to buy brand name or generic products is an example of what?
Comparison shopping
Any person or group that buys or uses goods and services to satisfy personal wants is called?
Consumer
Goods and services produced today, which are the same as produced in the past, and the way they are produced has not changed.
Traditional Economy
How does price affect demand?
Inverse/opposite relationship
If a price is low, people buy more (demand high). If price is high, people buy less (demand low). Consumers often substitute an expensive product for a cheaper product.
Ability to produce greater quantities of goods and services in better and faster ways is known as?
Productivity
Define Opportunity Cost
The value of the next best alternative that had to be given up for the alternative that was chosen.
Income spent on extra stuff like entertainment and luxury items is known as what?
discretionary income
The individual has little, if any influence; government controls the factors of production.
Command Economy
What is the trade-off/opportunity cost to choosing to study for an hour?
Sleep, hanging out with friends, working, hobby
Items that people buy and activities done for others for a fee are known as ?
goods and services
Food, clothing, and shelter are examples of...
Needs
Money left after all the costs of production have been paid is known as?
Profit
What type of economy does the U.S. have?
Mixed economy, trending towards Market Economy
What factor of demand would cause consumers to buy luxury/expensive items?
Income. The more money you have, the greater the demand there is for a product. This is because people can now afford these products and are consuming them more.
What influences what goods and services are being produced?
Goods and services customers buy influences what goods and services get produced.
Define economy
All the activity in a nation that together affects the production, distribution, and use of goods and services.
What is the difference between a credit card and debit card?
Credit card: renting money or paying it back later
Debit card: pay for it now, connected to checking or savings
What four basic questions does every society/nation have to answer?
What to produce, how to produce, who should produce what, who should share in what is produced (distribution of income).
Who decides what goods and services are produced?
Consumers AND suppliers decide what goods and services are produced.
If consumers don’t buy the products/services then the suppliers won’t make it. (if something isn’t being sold, the supplier won't produce that good)
Suppliers decide what gets produced because it's ultimately their decision if they want to produce that good/service.
The more of one item that is produced, the less of something else will be produced. What term describes this economic condition?
Trade-off
Land, labor, capital, entrepreneurship are examples of what?
Resources, factors of production
A deceptive or illegal advertising strategy used to trick people into buying certain products is called what?
Bait and switch
Today, almost all economic systems are considered which type?
Mixed Economy. Characteristics of command economy and market economy.
This term emphasizes that individuals are free to own and control the factors of production.
Free enterprise system. Ex: entrepreneurship.