Intro to Econ
This is the study of how people use limited resources to satisfy unlimited wants.
What is economics?
When individuals or nations focus on producing a limited range of goods or services.
What is specialization?
The type of economy where decisions are made based on customs and traditions.
What is a traditional economy?
This law states that as price increases, quantity demanded decreases.
What is the law of demand?
The total value of all goods and services produced within a country in a year.
What is GDP (Gross Domestic Product)?
The fundamental problem that economics seeks to address.
What is scarcity?
The economic principle stating that trade benefits all parties involved.
What is comparative advantage?
The economic system where the government makes all economic decisions.
What is a command economy?
The graphical representation of supply and demand intersecting.
What is equilibrium?
The phase of the business cycle where the economy is growing.
What is expansion?
The term for the next best alternative given up when making a decision.
What is opportunity cost?
The ability of one producer to make a good using fewer resources than another.
What is absolute advantage?
The type of economy that combines aspects of command and market economies.
What is a mixed economy?
A situation where quantity supplied exceeds quantity demanded.
What is a surplus?
The term for prolonged economic decline.
What is a recession?
The two main branches of economics.
What are microeconomics and macroeconomics?
This economic policy limits trade between nations.
What is protectionism?
In a market economy, this group determines what gets produced.
Who are consumers?
A government-imposed minimum price for a good or service.
What is a price floor?
The government agency responsible for monetary policy in the U.S.
What is the Federal Reserve?
The three basic economic questions every society must answer.
What are what to produce, how to produce, and for whom to produce?
The term for the total value of goods and services a country exports compared to what
What is the balance of trade?
The term for the rivalry between businesses to attract customers.
What is competition?
The term for when a small price change causes a large change in quantity demanded.
What is elasticity?
A period of extremely high inflation.
What is hyperinflation?