Economic Systems
Price Determinants
Supply & Demand
Kinds of Goods
Vocabulary
100
The government makes decisions about how much to make and how much it costs and where the jobs will be
What is A Command Economy?
100
People might spend more for red cars than for other colors, because the red cars look so cool.
What is personal taste?
100
The price goes down because there are too many units of a product available.
What is oversupply?
100
A table.
What is a rival, exclusive good?
100
trickle-down economicsThe idea that policies should favor business and growth, which will increase hiring, and make everyone rich.
What is The idea that policies should favor business and growth, which will increase hiring, and make everyone rich?
200
The market determines production and prices, without interference from any government body
What is laissez-faire capitalism
200
If product A is too expensive, a customer might by product B instead.
What are substitute products
200
A company dominates a particular market, preventing any competition.
What is a monopoly?
200
Cable television service
What is a non-rival, excludable good?
200
Gross Domestic Product
What is A measure of the total production of a country
300
The means of production are owned by the people
What is socialism?
300
No one will drop their prices because then everyone will, and no one will raise them because then they'll lose customers.
What are sticky prices?
300
A business does poorly because it doesn't have enough capital in reserve.
What is undercapitalization?
300
A video on You-tube
What is a non-rival, non-excludable good.
300
The Invisible Hand
What is the force that drives the marketplace in a capitalist system
400
The market-place drives production, with some guidance from government bodies.
What is Keynsian Economics
400
Jim will be more likely to buy product A if he can get a good deal on product B.
What are complementary products?
400
A company puts the price of its goods at or below cost in an attempt to put competitors out of business.
What is underselling?
400
Fish in the ocean
What is a rival, non-excludable good?
400
privatizationTo take a public service or resource, and turn it over to private companies.
What is taking a public service or resource, and turn it over to private companies. ?
500
In this economic model, people do not trade directly, instead, they give gifts, and gain social status by giving a lot.
What is a gift economy?
500
A person buys a house with an expensive mortgage, assuming it will increase in value.
What are future expectations?
500
A particular part of the market for a good that the manufacturer intends to sell the good to.
What is a market niche?
500
World peace?
What is a non-rival, non-excludable good?
500
The idea that the change in availability of a good can affect the USES to which it is put and hence its VALUE
What is marginal utility
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