Key Concepts
Circular Flow
Supply & Demand
Resource Allocation
Non-Price Factors
100
The problem of people having unlimited wants, but limited resources.
Scarcity
100
What are the two sectors in the basic circular flow model?
Businesses and Households
100
When demand decreases as prices rise, this is known as what law?
Law of Demand
100
The word used to describe natural items used to make a good.
Land
100
Non-price factors cause __________ to supply and demand curves.
Shifts
200
The way consumers make choices about what they buy to satisfy their needs and wants.
Making Choices
200
What do businesses provide for households?
Goods and services
200
When the price of a good is high, suppliers will want to?
Produce higher amounts
200
The word used to describe the people who make the good or service.
Labour
200
Ice cream flavoured chewing gum goes viral on TikTok and influencers urge people to go out and try it. What happens to the demand of the product?
Demand Increases
300
What do businesses give households in exchange for labour?
Income
300
What is it called when both producers and consumers are happy with the price and supplied quantity?
Equilibrium
300
The word used to describe the tools and machines used to make goods.
Capital
300
The metals needed for the inside of a new iPhone become too expensive to use. What happens to supply?
Supply decreases
400
Where do buyers and sellers interact to exchange goods and services?
Market
400
What do households give businesses in exchange for wages?
Labour
400
Draw a supply curve, make sure every axis and line is labelled.
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400
A business's ability to combine land, labour and capital to make a profit.
Enterprise
400
What is one example of a non-price factor that would increase supply?
Opens include: Improved technology, Resources cheaper to use, Related goods more expensive, Lower taxes, etc.
500
How we distribute scarce resources among producers?
Allocation
500
What do households provide for businesses?
Expenditures
500
Draw a demand curve and show a positive shift in demand labelled as D1.
500
What are the three basic economic questions?
What to produce?
How to produce?
Who to produce for?
500
What is one non-price factor that will decrease the demand of a product?
Answers include: Lower incomes, Population decrease, Cheaper related goods, Does't meet expectations, Change in tastes