Capitalism
Name the 4 Principles of Capitalism
1. Private Property
2. Freedom of Choice
3. Profit
4. Competition
What are the 3 economic resources
Natural
Labor / Human
Capital
Name 3 of the 6 shifters of Demand
Income
Inferior Goods
Population
Tastes
Related Goods
○ Substitutes
○ Complementary Goods
Expectations
Name 3 of the 6 shifters of Supply
● Technological Innovations
● Input Price
● Taxes & Subsidies
● Expectations
● Entry & Exit of Producers
● Changes in Opportunity Cost
On which axis does price go?
Y axis
You can make decisions independently and you MUST
accept the consequences of those actions, good & bad.
Freedom of Choice
This resource includes workers
Labor
If there is more people in a market this would be what indicator of a shift in demand?
Population
The cost of materials goes down? What happens to the supply?
It goes up
On which axis does Quantity go?
Own & Dispose of things of value
PRIVATE PROPERTY
This resource is money or equipment
Capital Resources
The price of hamburger goes up causing the demand for hamburger buns to fall. This is an what indicator of a shift in demand?
Related Goods / Substitute Goods
Changes in Opportunity Cost
The claim that the quantity supplied of a good rises when the price of the good rises, other things equal
Rivalry among businesses to sell their goods and services
Competition
Every country must answer the 3 economic questions what are they
1. What goods and services will be produced?
2. How will goods and services be produced?
3. What needs and wants will be satisfied with the
good and services produced?
In the future, toilet paper companies expect the price of toilet paper to go down causing demand to go up, this would be what indicator of a demand shift?
Expectations
A new robot allows a company to produce more products, causing supply to go up. What indicator is this?
Technological Innovation
Above the Equilibrium a company would have a what?
Below the Equilibrium a company would have a what?
Above = Surplus
Below = Shortage
Businesses take risk for one reason, that reason is to earn what?
A Profit
This resource includes things made or grown in the earth?
Natural Resources
If a factory opens in town with high paying jobs this would be what indicator of a shift in demand?
Income
What is a Subsidie?
A payment usually from the government that a person gets paid for producing a certain resources.
The claim that the quantity demanded of a good falls when the price of the good rises, other things equal.
Law of Demand