Basics
This condition exists when there are not enough resources to full unlimited wants and needs.
What is scarcity?
The measure of how much consumers are able and willing to purchase at all price levels.
What is demand?
A nation's GDP divided by its population.
What is the GDP per capita?
In this system, prices are set by a central power.
What is command economy?
Show, on a diagram, the impact of a maximum price set below market equilibrium. Name the term used for the maximum price.
What is price ceiling; decrease quantity supplied?
An economy experiences this when its production possibilities curve shifts outward.
What is economic growth?
Demand can be described as this when a 50% decrease in price causes a 100% increase in quantity demanded.
What is elastic?
A sustained increased in a nation's production or output of goods and services.
What is economic growth?
The determinant of price in a free market economy.
What is the exchange between buyers and sellers?
Show, on a diagram, the effect on price and quantity when supply decreases and demand increases.
What is equilibrium price increase and ambiguous equilibrium quantity change?
The cost of forgoing the benefit of the next best alternative.
What is opportunity cost?
The determinant that best explains why demand for life-saving medicines is relatively inelastic.
What is necessity vs. luxury?
The total value of final goods and services produced within a country in a given year.
What is gross domestic product?
The regulatory force that keeps many prices low in a free market.
What is competition?
Show, on a diagram, the effect on the quantity of the Galaxy (Samsung) phone if Samsung lowers the retail price of the Galaxy.
What is decrease quantity supplied?
Investment in education and health care would improve this factor of production.
What is human capital?
Three factors what will increase quantity supplied at all price levels.
What is producer expectations of future price, government intervention, cost of inputs, supply of imports, or number of producers?
This is occurring in an economy when GDP is decreasing and unemployment is rising for two quarters.
What is recession?
The methods by which a society distributes its resources and produces goods and services.
DAILY DOUBLE (+800): Show, on a diagram, the impact on price and quantity of the newest Tesla model when there is an increase in consumer incomes and a production subsidy given to Tesla.
What is equilibrium quantity increase and ambiguous price change?
These are the four factors of production AND an example of each.
What is land: any natural resource; labor: example of someone paid for work; capital; example of tools or education/experience; entrepreneur: Elon Musk or any other cool business owner!
Four factors that will shift a demand curve.
What is change in consumer tastes & preferences, consumer expectations of future price, price of related goods, income or population?
These four types of spending make up a nation's GDP.
What is consumer spending, business investment spending, government spending, and net exports?
The five economic goals
What is freedom, security, equity, efficiency, and growth?
What is factors of production paid for by firms (costs of production) from households for income in the factor market and what is goods and services purchased from by households (consumer spending) from firms for revenue in the product market?