Economics Concepts
This is the study of how people meet unlimited wants with limited resources.
What is economics?
Items found in nature that are used to produce goods and services.
What are natural resources?
If buyers are willing and able to purchase 500 laptops at $800 each, economists describe that willingness using this term.
What is demand?
A company that sells clothing exclusively through its website without any physical stores operates as this.
What are e-tailers?
People who use goods and services to satisfy their wants.
Consumers
A producer that changes materials into useful products.
What is a manufacturer?
Manufactured items used to produce other goods are called this.
What are capital goods?
If sellers are willing to provide 500 laptops at $800 each, economists describe that using this term.
What is supply?
Target purchasing goods from manufacturers and selling them directly to shoppers makes it this type of business.
What is a retailer?
The economic process or activity by which income is divided among resource owners and producers.
What is distribution?
When changes in price strongly affect quantity demanded, demand is described as this.
What is elastic demand?
Skilled engineers and trained teachers fall under this category of productive resources.
What are human resources?
When the price of a product falls and consumers buy significantly more of it, the responsiveness of buyers is described using this concept.
What is elasticity?
A company that buys large quantities of goods from producers and resells them to stores is functioning as this.
What is a wholesaler?
When a government must choose between building a new highway or funding public schools, it faces this type of decision.
What is a trade-off?
A student chooses to spend two hours studying instead of working a paid shift. The lost wages represent this concept.
What is opportunity cost?
A mining company extracting coal directly from the earth is acting as this type of producer.
What is a raw-goods producer?
If ticket prices rise sharply but the number of tickets sold barely changes, economists describe that situation using this type of demand.
What is inelastic demand?
A business that operates out of a physical facility (instead of online).
What is brick and mortar?
A student chooses to spend two hours studying instead of working a paid shift. The lost wages represent this concept.
What is opportunity cost?
When the quantity of a product buyers want exceeds what producers are offering at a certain price, the market experiences this condition.
What is excess demand?
A company invests millions in advanced robotics that replace some assembly-line workers but dramatically increase output. Economists would classify the robotics as this specific factor of production.
What are capital goods?
After a sudden increase in consumer interest, producers raise prices and expand output because higher prices encourage them to supply more. This direct relationship between price and quantity supplied is described by what principle?
What is the law of supply?
When two parties trade goods or services without producing anything new, they are engaging in this economic process.
What is exchange?
If a business must decide how to allocate labor, materials, and equipment to create products, it is managing these.
What are factors of production?