Unit 1 The Basics A
Unit 1 The Basics B
Unit 1 Economic Systems
Unit 2 Supply and Demand A
Unit 2 Supply and Demand B
100
The principle that limited resources are available to meet unlimited wants
What is scarcity
100
The 3 categories of resources used to make goods and services
What is land, labor and capital
100
An economic system that relies on habit, custom, or ritual to make decisions.
What is traditional economy
100
Consumers will buy more of a good when its price is lower and less when its price is higher
What is law of demand
100
A change in production costs affects this curve
What is supply
200
The study of how people seek to satisfy their needs and wants by making choices
What is economics
200
The act of giving up one benefit to gain another, greater benefit
What is a trade-off
200
Any arrangement that allows buyers and sellers to exchange goods and services
What is a market
200
A good that consumers demand less of when their incomes increase
What is an inferior good
200
A change in income affects this curve
What is Demand
300
The knowledge and skills a worker gains through education and experience
What is human capital
300
The extra cost of adding one unit
What is marginal cost
300
An economic system in which decisions are based on supply and demand
What is free market economy
300
Describes demand that is not very sensitive to price changes
What is inelastic demand
300
A decrease in the price of a substitute results in the demand curve shifting in this direction
What is left
400
The most desirable alternative given up as the result of a decision
What is opportunity cost
400
A decision making process in which you compare what you will sacrifice and gain by a specific action
What is cost/benefit analysis
400
A term coined by Adam Smith to describe the self regulating nature of the market
What is "invisible hand"
400
Describes the demand for a good that has lots of substitutes
What is elastic demand
400
An improvement in production technology to produce computers would result in a shift in the supply curve in this direction
What is right
500
A graph that shows alternative ways to use an economy's productive resources
What is production possibilities curve (or frontier)
500
A phase expressing the idea that a country that decides to produce more military goods has fewer resources to produce consumer goods
What is "guns and butter"
500
An economic system in which the government makes all decisions
What is centrally planned economy
500
The label on the horizontal axis of the supply and demand graph
What is Quantity
500
The shape of a supply curve in the short run
What is vertical
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