Supply & Demand
This is the amount of a product consumers are willing and able to buy.
What is demand?
The study of how people make choices when resources are limited.
What is economics?
This branch of government creates laws that can affect the economy.
What is Congress/the legislative branch?
A person who starts and operates a business, usually taking on financial risk.
What is an entrepreneur?
Buying goods or services from another country is called this.
What is importing?
This is the amount of a product producers are willing and able to sell.
What is supply?
The condition that exists because people's wants are greater than the resources available to satisfy them.
What is scarcity?
The federal government uses this policy to influence the economy through taxes and government spending.
What is fiscal policy?
The payment workers receive for their labor.
What are wages?
Selling goods or services to another country is called this.
What is exporting?
When a popular product becomes difficult to find because many people want it, this economic force is increasing.
What is demand?
The value of the next-best alternative given up when making a choice.
What is opportunity cost?
This organization is responsible for conducting monetary policy in the United States.
What is the Federal Reserve?
A group of workers organized to negotiate with employers over wages and working conditions.
What is a labor union?
A tax placed on goods entering a country.
What is a tariff?
If the price of a product rises and consumers generally buy less of it, this principle is being demonstrated.
What is the law of demand?
An economy in which individuals and businesses make most economic decisions.
What is a market economy?
When the government collects more revenue than it spends, it has this.
What is a budget surplus?
When one company is the only seller of a particular product or service, this market structure exists.
What is a monopoly?
This concept explains why countries can benefit when they specialize in producing goods they can make relatively efficiently and trade with others.
What is comparative advantage?
This occurs when the quantity consumers want to buy matches the quantity producers want to sell.
What is market equilibrium?
This concept says that people respond to rewards and penalties when making decisions.
What are incentives?
This occurs when the general level of prices for goods and services rises over time.
What is inflation?
This occurs when businesses compete by making their products better, cheaper, or more appealing to consumers.
What is competition?
The exchange of goods and services between countries is known by this term.
What is international trade?