Basic Economic Concepts
Production
Consumption
Market
100

Economics is the study of how people and organizations use their ____________ resources to satisfy their ___________ wants.

Limited & Unlimited

100

Which economic term means two-way reliance or a "need each other" situation?

Interdependence

100

Amount of a good or service a consumer is willing and able to purchase at various prices at a certain time. What is that called?

Demand

100

Which price control does the government use to protect the producer or a resource such as labour?

Price Minimum
200

Name at least three factors of production.

Land, Labor, Capital, & Entrepreneurship

200
Marketing is not the same as selling. Name any two P's of Marketing.

Product, Price, Place, Promotion

200

As people's income increase, their demand for certain goods and services either increases or decreases. Which good is a lower quality good which you buy less of, as your income increases?

Inferior Good
200
When actual goods and services move between different sectors of the economy. What is this called?

Real Flows

300

As people make a choice, the next best alternative is not chosen. In economics, the best alternative not chosen, is called the ______________ of the decision.

Opportunity Cost

300

Productivity shows the relationship between outputs and inputs. State the formula for calculating productivity.

Output over Input, or Output divided by Input.
300

Which of the following is a determinant of Demand?

Price of Complementary Goods, or Price of Substitute Goods.

Both

300

Which market deals with the supply and demand for money?

Money Market

400

State the factor reward for people's skills and knowledge contributed into the production process of a product or service.

Wage

400
What economic term means that as the size of the business operations increase, i.e more labor, capital and natural resources are used, then average costs of production will fall?

Economies of Scale

400

What effect would the following statement have on the supply for dresses at Malu's Dress Shop?

The clothes designer at Malu’s Dress Shop has won an award at the annual South Pacific Fashion Competition in Auckland, New Zealand.

Increase in Demand.

400

Name the economist who discovered the Fisher's Identity or Equation - MV = PQ

Irving Fisher
500

Which type of good fit under the following definition?

"Are not scarce, and therefore will not have an opportunity cost."

Free Good.

500

"Losing the skill of producing the whole product", and "Delaying the production process when one person is away", is a disadvantage of what?

Division of Labour

500
Give one factor that could influence people's preferences for certain goods and services.

values, culture, religion, peer pressure, weather and seasons etc.

500

An economy which trades domestically only--that is, it does not sell to overseas countries, and it does not buy from overseas country

Closed Economy

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