Business Decisions
This reality makes it to where businesses are limited in what they can produce.
What is scarcity
In this economy, the government decides who gets goods.
What is a command economy?
The price of Arby's Meat Mountain drops in price. What do consumers do?
Buy more!
What is this the formula for?: ___ = C + I + G + (X - M). And what does it measure?
GDP (Gross Domestic Product). Economic Growth
This form of business provides limited liability protection for its owners.
What is a corporation?
Beau smartly decides to spend his Friday night studying for a test instead of going to a football game with friends. What's his opportunity cost?
What is going to the football game with friends?
This system is best at achieving efficiency due to competition.
What is a market economy?
This point where supply and demand meet determines price.
What is equilibrium?
What is a sustained decrease in GDP called?
What is a recession?
This condition makes loans more expensive and discourages borrowing.
What are higher interest rates?
This situation describes when it would be inefficient to produce any more goods or services because the cost of producing one more unit is greater than the benefit received.
What is when marginal cost exceeds marginal benefit?
What is the economic concept where everyone chooses to complete the part of the task that they are good at?
What is specialization?
According to this economic law, as the price of a good increases, producers are more willing to offer greater quantities for sale.
What is the law of supply?
This type of unemployment occurs during economic downturns like the Great Depression.
What is cyclical unemployment?
This type of loan has an interest rate that stays the same for the entire repayment period.
What is a fixed-rate loan?
Coach DeLamater's students beg for candy every day. Because he is so kind he gives them a lot. Suddenly, Coach DeLamater's classroom has more students than candy to give out. What is the economic term describes this problem in relation to the lack of candy?
What is a shortage?
In the circular flow, this flows from businesses to households in the resource market.
What is income?
This occurs when production becomes more difficult or costly due to factors like higher input prices, fewer resources, or stricter regulations, causing producers to supply less at every price.
What is a leftward shift of the supply curve?
This is the percentage change in the overall price level of goods and services in an economy over a period of time.
What is inflation rate?
Which form of borrowing tends to carry the highest interest rate?
Payday loans
This occurs when an economy experiences growth due to increases in resources, improvements in technology, or a more skilled workforce, allowing it to produce more of both goods.
What is a rightward shift of the Production Possibilities Frontier/Curve (PPF/PPC)?
This completes the circular flow diagram opposite households.
What are businesses?
Arby's announces that alongside the meat mountain, you can now get fries, a drink, and a dessert for the same price. What curve (supply/demand) will shift and which direction?
What is demand increasing (shift right)?
This policy action involves reducing taxes in order to increase consumer spending and stimulate economic growth.
What are tax cuts?
This is the type of insurance that pays for damage to your own vehicle after an accident, regardless of who is at fault.
What is collision insurance?