Scarcity
How does the scarcity of resources effect the price of goods?
It causes prices to go up.
How does growth in transportation affect economic activity?
They increase efficiency and decrease the prices of goods and services.
What does profit mean?
the money a business makes, minus its costs
What is the definition of supply?
the amount of some resources or goods available
How does specialization influence economic activity?
It increases efficiency because workers are focusing on a single task.
What typically happens when people use credit?
They will end up paying more for a product than they originally borrowed.
Why are banks important to the economy?
They provide a safe place to keep money.
How does increasing skills help people meet their needs or wants?
It improves income.
How does mass production impact the price of goods?
Prices will decrease due to higher efficiency.
How do negative price incentives most likely affect people’s choices when shopping?
They decide to postpone a purchase.
What is the main job of businesses in the economy?
They produce goods and services.
How is investing connected to saving?
Investing involves using savings to earn more money.
What if demand for a toy is high. What might stores do?
Possibly, raise the price of the toy.
What can people protect themselves from risk that would result in financial loss?
Save for emergencies and have insurance.
How do people, as members of the house, contribute to the economy?
They consume goods and services.
What does scarcity mean?
there isn't enough of something to go around.
What is the definition of demand?
the need or wish for something.
What is the definition of trade-off?
You give up something to get something else
What often happens to the prices of goods when supply is high and demand is low?
Prices go down.