Red
T or F
Voluntary Exchange refers to the process which producer and consumers negotiate $ and quantity of goods in the market
True
products a country brings in from other countries
imports
products a country ships out to other countries
exports
In a free market economy, the price is set by....
supply & demand
people can't have everything they need or want because...
scarcity
What happens to DEMAND if
both PRICE and QUANTITY increase
demand increases
when more people want a "high in demand" item 🧻, this may result in
Shortages
What happens to DEMAND if
both PRICE and QUANTITY decrease
demand decreases
Social programs involved. Taxes on rich and distributed to the rest. Main industries owned and controlled by government
Socialism
What type of economic system?
Equal ownership of resources by all of the people (the government owns and controls everything). Less inequality
Communism
T or F
the invisible hand refers to the government's role in regulating the economy and protecting consumers
False
how do we measure a country's productivity?
GDP: Gross Domestic Product
BONUS: What is GDP per capita?
Organization of Petroleum Exporting Countries
what's the intersecting point called on a supply and demand graph?
equilibrium
What regions are OPEC countries found in? List at least one
Middle East
Africa
Latin America
In a free market (capitalist) system, what happens if demand is increasing?
Producers will create more and price will increase
What type of economic system?
Competition between producers. More inequality between rich and poor. Some gov't involvement to regulate rules.
Capitalism
T or F
Mixed Economy is where there's a mix of traditional and Free Market Economies
False
when the amount of an item exceeds the number of people who want to buy it
surplus
What happens to SUPPLY if
PRICE increases and QUANTITY decreases
Supply Decrease
What happens to SUPPLY if
PRICE decreases and QUANTITY increases
Supply Increase
the study of how people make choices under scarcity
economics
In a free market (capitalist) system, if nothing else changes, what usually happens when the supply drops of something that people want?
price increases
T or F
The US is a mixed economy (but mainly a free market)
True
Define: bureaucracy
A formal organizational structure characterized by a hierarchical system of arrangements of tasks, authority, and responsibilities.