Economics
is another name for capitalism, an economic system based on private ownership of productive resources.
What is the free enterprise system
The law of supply states that businesses will produce more products when they can sell them at _____ prices and fewer products when the prices are low.
Higher
The law of demand states that buyers will demand a greater quantity of a good when its price is _____.
Low
The "balance point" where supply and demand match at a particular price.
What is equilbrium?
This is the legal maximum price that sellers may charge, for example rent control, or low ticket prices that encourage scalping.
What is a price ceiling?
Input cost, Labor Productivity, Technology, Government Actions , Producer Expectations, Number of Producers
What are the factors that affect supply?
What is the name for a table representing the quantity intended to sell or produce at a certain price level?
Supply Schedule
What is the term for the table that represents the quantity intended to purchase a good at a certain price level?
Demand schedule
At a specific Price, if demand is greater than supply, there is not enough for consumers.
What is a shortage?
This is a legal minimum price that buyers must pay for a product or service, like a minimum wage.
What is a price floor?
He is the father of classical economics and is credited with creating the concept of the "Invisible Hand".
Who was Adam Smith?
If the cost of a resource decrease, a supplier would make ______ products.
More
Successful advertising would _____ consumer demand.
Increase
At a particular price, the supply is greater than the demand. This will lead sellers to reduce their prices in order to find a new equilibrium between supply and demand.
What is a surplus?
The kind of surplus of labor that can be caused by minimum wage.
States that the marginal benefits of using each additional unit of the product during a given period will decline.
What is the law of diminishing return?
The law of supply states that businesses will produce more products when they can sell them at higher prices and fewer products when the prices are_____ .
Low
The law of demand states that buyers will demand a greater quantity of a good when its price is low. As the price rises, the quantity demanded _____.
Falls
These are the things that encourage people to act in certain ways, like how high prices can encourage people to bake cupcakes, or how free breakfast and lunch at school encourages students to eat.
What are incentives?
This is a government system for allocating resources using criteria other than price.
What is rationing?
What are the four characteristics of the price system
When presented with an incentive, a supplier would be motivated to produce ______ of a good or service.
More
Identify one reason why demand would fall for a good or service.
Price is set too
Broken consumer trust
Tax
This is what happens when producers sell products at lower prices to lure competitors away from rival producers while still maintaining a profit.
What is Competitive Pricing?
This is the term for illegal buying and selling in violation of price controls or rationing.
What is a Black Market?