Trade
Economic Theory
Graphs
Markets & Production
Key Concepts
100
In trading terms, if a country can efficiently produce more goods and services than another country, it has the:
What is absolute advantage?
100
This demonstrates the relationship between the price of a good and the quantity demanded.
What is a demand curve?
100
Changes to price cause this to occur to a point on a supply or demand curve.
What is a movement along?
100
A graph that shows the combinations of output that the economy can possibly produce given the available factors of production and the available production technology.
What is the production possibilities curve?
100
The study of how households and firms make decisions and how they interact in markets.
What is Macroeconomics?
200
Between two producers, this determines which of them has the comparative advantage.
What is a lower opportunity cost?
200
The positive relationship between price and quantity supplied is the:
What is the Law of Supply?
200
In a market for motorcycles that originally had only 4 sellers, there are now 20 sellers. This would be the resultant change to the supply and demand graph for this market.
What is a rightward shift to supply?
200
Retail stores not being able to meet consumer demand. This is an example of:
What is a shortage?
200
By assessing what would be the most productive usage of your time after school to complete homework, handle chores, and get ready for bed, you are leveraging the economic principle of:
What is efficiency?
300
The individual with the comparative advantage in the production of pies.
Who is William?
300
In traditional economic theory, people are considered:
What is rational and/or self-interested?
300
Due to a worsening recession, American families begin to lose more of their disposable income. This is the resultant change to the supply and demand graph for the housing market.
What is a leftward shift of the demand curve?
300
A market in which there are many buyers and many sellers so that each has a negligible impact on the market price.
What is a competitive market?
300
Marketing strategies are designed to influence consumers to act in certain ways. This may also be called:
What is incentive?
400
The comparative advantage for filling cavities belongs to:
Who is Victoria?
400
The prices of goods and services in a market are driven by these:
What are supply and demand?
400
Changes to the price of resources immediately affect this side of the market.
What is the supply side?
OR
Who are producers?
400
In 2023, Dennis had a real salary of $75,000. Dennis frequents Starbucks each morning on his way to work. Due to his student loans and various monthly expenses, he would purchase only "tall" drinks. In February of 2024, Dennis' real salary increased to $87,000 due to a retention bonus he received for being a loyal employee for over 12 years at the company he works for. Now that Dennis' salary has increased, he purchases "venti" drinks on his morning coffee runs before work. Coffee for Dennis in this scenario is a:
What is a normal good?
400
The benefit that would have been received by taking the next best action instead of the action taken.
What is opportunity cost?
500
Coffee beans that are cultivated in Colombia but are being brought to the U.S. for American consumption would be considered:
What is an import?
500
Netflix has recently increased its subscription prices. As a result, Hulu is now seeing exponential growth in the amount of new subscribers while Netflix is simultaneously losing subscribers. In the market for streaming services, Netflix and Hulu are:
What are substitutes?
500
Production at point 2 for this company is considered:
What is unattainable?
500
A group of buyers and sellers of a particular good or service in an economy make up a:
What is a market?
500
DAILY DOUBLE!
Due to resources being scarce, there will always be an infinite amount of needs and wants, and a finite amount of goods and services to fulfill those needs. This refers to the:
What is the economic problem?
OR
What is the economic dilemma?