Key Vocabulary
Economics deals with how people seek to satisfy their ______ and ______ by making choices.
No person, business, or nation has enough resources to satisfy all wants and needs. This is called ______
limited resources
An economic system in which a central government determines the goals and priorities of the economy is called ________-
command economy
The quantity of a good consumers are willing to buy at a given price is called ______
demand
Identify one want and one need for a movie theater to be successful.
answers will vary
The branch of economics that deals with broad trends, inflation, unemployment, and GDP is called _________.
Unlimited wants exceeding limited resources is the problem of ______
scarcity
The type of economy that allows consumers and producers to freely exchange goods and services is called _________.
market economy
The quantity of a good producers are willing to supply at a given price is called ______
supply
If you choose to work extra hours and give up time with friends, the fun you miss out on is your ______
opportunity cost
A situation where people must choose how to use resources because they cannot have everything they want is called ______
trade-offs
The distribution of scarce materials among producers and consumers is called ______
allocation of resources
An economy in which exchange depends in large degree on cultural norms is _________.
traditional economy
Where supply equals demand is called ______
equilibrium
DOUBLE POINTS!
The type of market structure in which many small/medium-sized firms compete is called ______
monopolistic competition
Inputs used in producing goods or services are called ________
factors of production
The three types of resources are ______, ______, and ______
land, labor, capital
An economic system answers what goods are produced, how they’re produced, and ______
for whom they are produced
Costs that do not change with the level of output are ______
fixed costs
This model assumes people compare the costs and benefits of each choice in order to make the decision that maximizes their personal advantage.
rational choice theory
DOUBLE POINTS!
The cost added by producing one more unit of a product is called ______
marginal cost
When resources are used effectively compared to their availability, this is called ______
resource utilization
Economic goals include growth, stability, and ______ (name two more)
efficiency, equity, security, freedom
supply; demand
What are three of the four factors that determine a market structure?
number of firms, type of product, ease of entry/exit, level of competition