Scarcity & Choices
The basic problem of economics caused by limited resources and unlimited wants.
What is scarcity?
The point where supply equals demand.
The government uses taxing and spending to influence the economy.
What is fiscal policy?
The form students fill out to apply for federal financial aid.
What is FAFSA?
Type of economic system where the government controls who, what, and how things are produced
Command
Because of scarcity, people must do this
What is make choices/decisions
When price goes up, demand goes down — this is known as the _______ of ________.
What is Law of Demand?
The central bank of the U.S. that controls the money supply.
What is the Federal Reserve?
Money in college that you receive that you don't have to pay back
What are grants?
___ is the decreasing value of money over time
Inflation
The next best alternative given up when a choice is made.
What is opportunity cost?
Market structure with one seller controlling price and output.
What is monopoly?
The Fed might raise these to slow inflation.
What are interest rates?
Generally, how education level affects income.
Higher education → higher earning potential.
The cost of borrowing money, usually expressed as a percentage.
What is interest?
Name the four factors of production.
What are land, labor, capital, and entrepreneurship?
This market structure has many sellers offering identical products.
What is perfect competition?
The total value of all goods and services produced in a country in a year.
One advantage of attending a trade school.
What is lower cost, shorter program, or job-ready skills?
This type of unemployment happens when workers’ skills no longer match available jobs. *Daily Double*
What is structural unemployment?
Resources are _______
What is limited?
The law of supply states:
If the price of a good increases, so will the quantity supplied OR if the price of a good decreases, so will the quantity supplied
List the four stages of the business cycle
What are Expansion, Peak, Contraction, Trough.
How military service can help pay for college.
What is GI Bill, tuition assistant, they will pay after you serve your term?
The three economic questions all societies must answer are: what to produce, how to produce, and _____.
For whom to produce?