Vocabulary Terms
What is the definition of GDP
The total value of goods and services produced within a country in one year.
Law of Demand: What happens when price decreases?
Quantity demanded increases.
What market structure is made up of many sellers selling identical products?
Perfect competition.
What is globalization?
The increasing interconnection of economies worldwide.
Mr. Recker is optimistic about his company. What happens to the supply curve?
It shifts to the right.
What is a mixed economy?
An economy combining elements of both market and command systems.
What does equilibrium mean?
The point where supply equals demand.
What is a monopoly? Give an example.
One seller controls the entire market. Example: Local utility company.
Name one positive effect of globalization.
Lower prices and increased access to goods and services.
If cruise prices fall and quality rises, how does demand change?
Demand increases (shifts right).
Name the four factors of production.
Land, Labor, Capital, Entrepreneurship.
What causes a shift in the supply curve? Give an example.
Changes in input costs, technology, etc. E.g., cheaper materials increase supply.
Describe monopolistic competition.
Many sellers offer similar but not identical products (e.g., restaurants).
Name one negative effect of globalization.
Job loss in industries unable to compete globally.
Why would a company build greenhouses to compete in tomato production?
To lower costs, shorten shipping time, and compete with imports.
What does the term "elastic demand" mean?
A situation where demand changes significantly when price changes.
What happens when both demand and supply shift in opposite directions?
Price changes predictably, but quantity outcome depends on which shift is larger.
How does an oligopoly affect pricing?
Prices may remain high due to limited competition among a few large firms.
What is the "digital divide"?
The gap between those with and without access to technology.
What happens in a perfect competition market to profits and prices?
Prices and profits are low due to intense competition.
Define the difference between product markets and factor markets.
Product markets are where goods/services are sold; factor markets are where productive resources (like labor) are bought/sold.
Explain how a drought and increased demand impact corn prices.
Both lower supply and higher demand raise the equilibrium price; quantity change is uncertain.
Which structure has the most consumer power and why?
Perfect competition—many sellers, identical products, and price transparency.
How has globalization impacted developing nations?
Lifted many out of poverty but also led to labor exploitation and inequality.
Explain the impact of EV investments on Kentucky’s economy using CERER.
Claim: National/global trends drive growth; Evidence: $11B+ EV investments; Reasoning: New jobs and industry diversification; Evidence: Wage increases and global rankings; Reasoning: Kentucky is now a global EV leader.