BASIC ECONOMICS
This term refers to the study of how people use limited resources to satisfy unlimited wants.
What is economics?
According to this law, consumers buy less of a product as its price rises.
What is the Law of Demand?
In this economy, consumers and businesses make most economic decisions.
What is a market economy?
A business owned by one person is called this.
What is a sole proprietorship?
This measures the total value of final goods and services produced in a country.
What is GDP?
This is the next best alternative given up when making a decision.
What is opportunity cost?
A situation where quantity demanded is greater than quantity supplied.
What is a shortage?
This economic system combines free markets with some government involvement.
What is a mixed economy?
Workers organize into these groups to improve wages and working conditions.
What are unions?
This term describes a general increase in prices over time.
What is inflation?
“There Ain’t No Such Thing As A Free Lunch” is commonly shortened to this acronym.
What is TANSTAAFL?
These goods are used together, like phones and chargers.
What are complements?
In this economy, the government controls production and prices.
What is a command economy?
This is the negotiation process between unions and employers.
What is collective bargaining?
People who are without jobs but actively looking for work are considered this.
What is unemployed?
These are the four factors of production.
What are land, labor, capital, and entrepreneurship?
The point where supply equals demand is called this.
What is equilibrium?
Adam Smith used this phrase to describe how self-interest benefits society.
What is the invisible hand?
This market structure has many firms selling slightly different products.
What is monopolistic competition?
This type of unemployment happens during recessions.
What is cyclical unemployment?
This occurs when resources are limited but human wants are unlimited.
What is scarcity?
This type of price control sets a legal maximum price.
What is a price ceiling?
This French phrase means the government should interfere very little in the economy.
What is laissez-faire?
A market dominated by one seller is called this.
What is a monopoly?
GDP divided by population is called this.
What is GDP per capita?