Basic Economics
This is the fundamental economic problem that forces societies to make choices.
What is scarcity?
A change in the price of a product causes this type of change on a demand curve.
What is a movement along the demand curve?
This curve shows the maximum possible combinations of goods an economy can produce.
What is a PPC?
When government spending exceeds tax revenue, the budget is described as this.
What is a deficit budget?
This type of market has many buyers and sellers and no control over price.
What is perfect competition?
This measures the value of all final goods and services produced within a country in one year.
What is GDP?
When quantity demanded changes significantly in response to a price change, demand is described as this.
What is elastic demand?
A point inside the PPC represents this economic condition.
What is underutilization of resources?
When tax revenues exceed government spending, the budget is described as this.
What is a surplus budget?
In the long run, firms in perfect competition earn this level of profit.
What is normal profit?
This refers to the next best alternative that is given up when a decision is made.
What is opportunity cost?
A change in consumer income causes this type of change to demand.
What is a shift in the demand curve?
A point outside the PPC represents this.
What is unattainable production?
An increase in the Consumer Price Index indicates this economic condition.
What is inflation?
This is NOT part of Canada’s welfare system: welfare payments, employment insurance, public health care, or research grants.
What are research grants?
This type of economy relies on prices and profit to allocate resources.
What is a market economy?
This describes demand when quantity demanded barely changes after a price change.
What is inelastic demand?
Movement along the PPC demonstrates this economic concept.
What is opportunity cost?
This policy involves increasing government spending or lowering taxes to stimulate the economy.
What is expansionary fiscal policy?
These government securities are short-term, while bonds are long-term.
What are treasury bills?
This economic concept explains why wants exceed available resources.
What is scarcity?
According to the Law of Demand, when price rises, quantity demanded does this.
What decreases?
Points on the PPC show this use of resources.
What is efficient or full utilization of resources?
Printing too much money can lead to this economic problem.
What is inflation?
This long-term government security pays interest over time and is used to finance government spending.
What are bonds?