Economic Systems
What type of economy does the U.S. have?
Mixed Economy
Scarcity
Name the four factors of production
land, labor, capital, and entrepreneurship
Law of Demand: When price goes up, demand goes ___?
Down
What are the benefits of competition?
Lower prices, better quality, more choices, efficiency, innovation
Economic system where the government makes all the decisions
Command Economy
Term for the next best alternative you give up when making a choice?
Opportunity Cost
Human effort used to make goods/services is called?
Labor
Law of Supply: When price goes up, supply goes ___?
Up
What causes movement along the curve?
Change in price
Economic system that has no government involvement and individuals and businesses make all the choices
Market Economy
The study of how people and societies use limited resources to satisfy unlimited wants and needs.
Economics
Tools, machines, and equipment
Capitol
What is it called when quantity demanded = quantity supplied?
Equilibrium
What could shift the demand curve? (name at least 2)
Trends, income changes, substitutes, complements
Economic system where both individuals and the government makes decisions
Mixed Economy
When you give up one option to get another, this is called a ___?
Trade-off
Natural resources that go into production
Land
Too many products, not enough buyers is a ___?
Surplus
What could shift the demand curve? (name at least 2)
taxes and subsidies, cost of production, technology, number of sellers, expectations
Economic system based on habits, customs, and traditions?
Traditional Economy
Trade-offs help with better ___?
Decisions
Why is entrepreneurship important?
Brings the factors together, and is willing to take risks
Price of iPhone decreases → what happens to demand for AirPods?
Demand increases (complementary goods)
What does a point inside the PPC mean?
Inefficient use of resources