Supply
What is a price floor?
A legally established minimum price.
True or False: Demand goes up?
False
What is the term for legal responsibility for something, especially in business transactions
liability
What is prince ceiling?
This type of price control is set below equilibrium and results in a shortage.
What is a Business Cycle
The business cycle is the way the economy goes up and down over time, like a wave. It has periods when things are great and periods when things are slow.
What is the Law of Supply?
The principle that, all other factors being equal, as the price of a good or service increases, the quantity of goods or services that suppliers offer will increase, and vice versa.
What is the Law of Demand?
When the price increases, the quantity demanded decreases
What type of liability involves the owner being personally responsible for business debts?
unlimited liability
What is a surplus of labor/unemployment?
When the government sets a minimum wage above equilibrium, this occurs in the labor market.
This major economic factor, set by the central bank, is often cut to encourage growth and raised to slow inflation.
Interest Rates.
What is the supply curve?
The upward-sloping line that graphically shows the quantities supplied at each possible price.
When the price of a product changes, what happens to the curve on the graph?
A. Nothing
B. It adds another line.
C. It shifts.
D. There is no line.
C. It shifts
Which type of business structure allows owners to limit their liability to the amount of their investment in the company?
limited liability company (LLC)
What is a price floor?
This type of price control is set above equilibrium and often applies to things like farm products or wages.
What causes economic growth/downfall in the Business Cycle
the business cycle's economic growth and decline are mainly caused by shifts in "aggregate demand"- (the total spending in the economy)
What is a change in quantity supplied?
This is what a change in the price of the good itself causes, a movement along the supply curve.
What is the definition of Demand?
A. When a customer doesn’t want to buy something.
B. When the producer buy resources for their business.
C. How much money a customer spends on a product.
D. The quantity a consumer is willing and able to purchase at each price
D. The quantity a consumer is willing and able to purchase at each price
What type of liability refers to the obligation to repay debts even if the business fails?
personal liability
What is a price ceiling?
Governments often impose this type of price control on essential items like rent, food, or medicine to keep them affordable.
What is Aggregate Demand.
The TOTAL quantity of ALL goods and services consumers are willing and able to purchase at each price level in a given period of time.
What is to the left?
An increase in production costs will cause the supply curve to shift in this direction.
What are the determinants of Demand?
Change in Tastes
Change in Income
Change in Market size
Change in Expectation
Change in Related Goods
What is the term for a company's responsibility for its debts and obligations, which can affect its financial standing and risk of bankruptcy?
corporate liability
What is a surplus?
When a price floor is set above equilibrium, this extra amount of goods that producers want to sell but consumers don’t buy appears.
What does GDP stand for, and what does it mean.
GDP stands for Gross Domestic Product.
It's the best way to measure a country's economic activity because it represents the total monetary value of all the final goods and services