EC-070
What is the difference between a producer and a consumer?
A producer makes the product, while the consumer buys it to use it.
Give a simple definition of an economic want and a non-economic want.
Economic wants - anything you desire that requires the use of money
Non-economic wants - something you desire that doesn't require money
What are 3 types of resources?
Human, natural, and capital
True or false: Natural resources, human resources, and capital goods are unlimited
The quantity of a good or service that producers are able and willing to offer for sale at a specified price in a given period of time is...
supply
What is the trade industry?
It is buying and selling goods and services from one another in return for compensation levied from the buyer by the seller.
What is the difference between industrial goods and consumer goods?
Consumer goods are products used by consumers. Capital goods are man-made products used by a business to produce consumer or other capital goods.
List at least 2 examples of natural resources.
Land, Minerals such as iron ore, gold, silver, and copper, Energy reserves, such as oil, coal, and natural gas, Lakes, rivers, oceans, and other bodies of water, Wildlife and vegetation, Air, Weather conditions, including sunshine, precipitation, and wind
What are the 2 types of wants?
Economic and non-economic wants
The quantity of a good or service that consumers are ready to buy at a given price at a
particular time is known as...
demand
What do service business sell?
Intangible activities
What determines whether an economic product is an industrial product or a consumer product?
Who buys and uses the product
Why are economic goods known as factors of production?
They enable businesses to produce the goods and services that consumers want.
When you cut down on your spending, what is it called?
economizing
Explain the difference between a buyer's and seller's market.
In a buyer's market, there are plenty of products for sale, so buyers have the upper hand with more choices and better bargaining power. In contrast, in a seller's market, there are few products available, giving sellers the advantage with higher prices and less room for negotiation.
True or false: Trade industries all have the same form of ownership.
False; they may be independent or belong to a chain
A student purchased a laptop to use for homework assignments. In economic terms, this computer would be classified as a(n) __________ good.
consumer
What is an example of a human resource?
Real estate agents, Marketing researchers, Truck drivers, Entrepreneurs, Operations managers, etc
Two factors involved in determining the value of a resource, good, or service are...
availability and demand
Name at least one factor necessary for demand to exist.
desire for a product, buying power to pay for
the product, and willingness to exchange buying power
What are the 2 main divisions of the trade industry?
Wholesalers and retailers
What are the 4 types of consumer goods?
Convenience, unsought, specialty, shopping
What is the most important resource and why?
Human resources are our most important economic resource because they combine the other resources to produce goods and services. Human resources are required in the production of all goods and services.
What is an example of capital goods?
buildings, equipment, roads, etc
What is elasticity? What are the two types of demand in this context?
Elasticity refers to the indication of how changes in price will affect changes in the amounts demanded and
supplied.
Elastic and inelastic demand.