Supply & Demand
When demand goes up but supply stays the same, what happens to price?
Price goes up.
What does scarcity mean in economics?
Limited resources for unlimited wants.
In which system does the government make all major economic decisions?
What do we call anything that is generally accepted as payment?
Money.
What is GDP
Gross Domestic Product
When supply increases but demand stays the same, what happens to price?
Price goes down.
Give one example of a scarce resource.
Money, Water, Oil, etc
In which system do individuals and businesses make most economic decisions?
Market Economy
Name one function of money
medium of exchange, store of value, unit of account
A tax on imported goods is called what?
Tariff
The point where supply and demand meet is called what?
Equilibrium
Because of scarcity, what must people make?
Choices/Trade offs
What kind of economy does the U.S. have?
Mixed Economy
What is the name of the central bank of the United States?
The Federal Reserve
What is a budget?
Plan on how to spend money
What is the term for how much of a good consumers are willing and able to buy?
Demand
The cost of what you give up when you choose something is called what?
Opportunity Cost
Name one advantage of a market economy.
Any: competition, innovation, freedom of choice
What happens if too much money is printed and put into circulation?
Inflation
What do we call a prolonged period of high unemployment and low production?
Recession
What is the term for how much of a good producers are willing and able to sell?
Supply
carcity forces individuals, businesses, and governments to do what?
Prioritize and allocate resources.
Name one disadvantage of a command economy.
Any: lack of incentives, less efficiency, shortages
What do banks do with the money you deposit?
Lend it out and earn interest.
Name one way governments can encourage economic growth.
Any: lower taxes, invest in infrastructure, encourage business investment