Supply and Demand
Shows how quantity supplied changes with price
Supply Curve
Individuals own businesses to make a profit
Free Enterprise
The exchange of goods and services between parties
Trade
The upward trend in an economy's production of goods and services.
Economic Growth
Government action to influence market outcomes.
Intervention
Can be caused by changes in consumer preferences
Shift in Demand
Environmental Resources
Land
A tax imposed on imported goods
Tariff
Key indicator of a country's economic health, often abbreviated
GDP (Gross Domestic Product)
Buyers or sellers have more information than the other party
Information
Shows how quantity demanded changes with price
Demand Curve
The risk-taking resource
Entrepreneurship
What is the primary purpose of a tariff?
To protect domestic industries
Measure of how well resources are used to create output.
Productivity
Costs or benefits not reflected in the market price Asymmetry
Externalities
Can be caused by new technology making production cheaper
Shift in Supply
Money, buildings, machinery and equipment used to produce goods and services
Capital
The concept of focusing on producing a specific good or service
Specialization
What does the “Rule of 72” help estimate
How long it takes an economy to double in size
Ability to influence market prices due to lack of competition
Market Power
Where quantity supplied equals quantity demanded
Equilibrium Point
Mental and physical efforts of people applied to the production of goods and services
Labor
What economic principle explains why two parties benefit from trade, even if one is more efficient in producing everything
Comparative advantage
Three key factors that contribute to economic growth.
Technological Advancements, Human Capital Development & Innovation and Entrepreneurship
Three ways governments can intervene in markets to address pricing issues
Regulations, Taxes/Subsidies and Anti-trust Laws