Scarcity and Economic Reasoning
The inability to satisfy the unlimited wants and needs of people
what is scarcity
This term refers to the amount of a good that consumers are willing and able to buy at each possible price level, holding all other factors constant.
What is demand?
This type of market structure is characterized by a single seller that controls the entire supply of a particular good or service, often resulting in no competition.
What is a monopoly?
This is the total market value of all final goods and services produced within a country in a given time period.
What is Gross Domestic Product?
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Scarcity refers to a basic
Economic problem
A change in this factor will cause the entire demand curve to shift either to the left or the right. This can be due to factors like consumer preferences, income, or the prices of related goods.
What is a change in demand?
In this market structure, a few large firms dominate the market and sell either identical or differentiated products.
What is an oligopoly?
The difference between exports and imports is known as this. A positive value means a country exports more than it imports.
What is the balance of trade?
This financial goal involves putting money aside for future needs, emergencies, or large purchases, rather than spending it immediately.
What is saving?
This term refers to the resources that are used to produce goods and services, including land, labor, and capital.
What are factors of production?
This law in economics states that, all else being equal, as the price of a good or service rises, the quantity supplied increases.
What is the law of supply?
This market structure is characterized by many firms selling differentiated products, with relatively easy entry and exit, and a high level of competition.
What is monopolistic competition?
This is the term for an increase in the value of goods and services produced by an economy over time.
What is economic growth?
The practice of putting money into various types of investments (stocks, bonds, real estate) to generate additional income is known as this.
What is investing?
This principle argues that resources should be used in such a way that they maximize the total benefit to society.
What is economic efficiency?
The law of supply is explained by producers' willingness to offer more of a good at a higher price because higher prices generally lead to this outcome.
What is higher profits?
This type of market structure has many firms selling identical products with no barriers to entry and firms are price takers.
What is perfect competition?
This is the general increase in the price level of goods and services in an economy over time.
What is inflation?
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What is a credit score?
In economics, the cost of what you give up when making a decision is known as this.
What is opportunity cost?
When the price of a good is set below the equilibrium price, this occurs, causing excess demand.
What is a shortage?
In this market structure, firms have some control over the price of their product but still face competition from other similar products.
What is monopolistic competition?
This is the unemployment rate that occurs when the economy is at full employment and is usually considered a natural or normal level of unemployment.
What is frictional unemployment?
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