Economics 1.0
When the demand for a good or service is greater than the availability of the good or service.
This is having a limited quantity of resources to meet unlimited wants.
what is scarcity?
When a country does not have enough of a resource to meet demand.
What is scarcity?
The definition of capital goods
What are human-made goods used to produce other goods?
Two or more businesses selling the same product trying to get consumers to buy from them.
What is competition?
an exchange of two or more items of value. Countries will import & export in this exchange.
What is trade?
People or businesses that buy or consume products and services.
What is a consumer?
An action done in exchange for money
What are services?
Objects that can be bought or sold
What are goods?
Refers to how many people want those goods and services.
What is demand?
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 surplus?
People or businesses that make and manufacture raw materials into goods and services.
What is a producer?
A system of money that studies of how people meet their needs and wants
What is economics?
The number of goods and services that are available.
What is supply?
When competition increases, the price of an item will__________.
What is decrease?
a drought happens and causes a low supply of cocoa beans needed to make chocolate. What will happen to the price of chocolate?
Chocolate will increase in price.
List the four factors of production
What are capital goods, entrepreneurship, human resources/labor, and natural resources/land?
Two-part question;
The amount of an item available for sale
The number of consumers willing to buy the item.
What are supply and demand?
The 3 essential questions of economics.
What to produce?
How to produce?
For whom to produce?
What is the relationship between demand and price? ( 2 answers needed)
When demand is high, price is high.
When demand is low, price is low.
Apple just came out with the newest iPhone, the iPhone 13. Due to COVID, many employees were not able to come to work. What is the resource that is lacking and what will happen to the supply? ( 2 part answer)
human resource
decrease
When a country has the resources to make a product more efficiently than other countries.
What is comparative advantage?
Give an example of an economic competition
Answers will vary
Give an example of how a change in the factors of production would impact the price of orange juice.
Include: What factor of production is impacted? What happens to the cost of that factor of production? What happens to the price of orange juice?
Example;
A flood causes the amount of oranges to decrease. This makes oranges more expensive and therefore the price of oranges will increase.
What is the relationship between supply and price? ( 2 answers needed)
When supply is low, price is high.
When supply is high, price is low.
A car dealership has many 2022 models still on the lot. New 2023 models are starting to come to the dealerships. The price for the 2022 models will ______ because the demand for the 2022 models has ______________. ( 2 part answer)
Price will decrease
Demand will decrease