Concepts
The amount of the good or service that customers want to buy
Demand
The ______ states that as price increases, quantity supplied increases
Law of Supply
A local coffee shop decides to lower its prices to attract more customers. What branch of economics would this cover?
Microeconomics
Which economist is known for writing The Communist Manifesto and developing the theory of socialism and communism?
Any place where buyers and sellers meet to exchange goods and services
Market
The condition in which resources are limited and not enough to meet unlimited wants and needs
Scarcity
Market equilibrium is the point in which ______ meets _______
supply, demand
Who famously wrote this quote: "It is not from the benevolence of the butcher, the brewer, or the baker, that we expect our dinner, but from their regard to their own interest"
Adam Smith
Created in 1936 by John Maynard Keynes and considered one of the main branches of economics
Macroeconomics
_______ is one of the only countries that has a command economy
North Korea/Cuba
When there is excess supply, meaning that the quantity supplied is greater than quantity demanded
Surplus
Name two non-price determinants that can shift supply
Number of Firms
Costs of factors of production
Related goods
Expectations
Subsidies / Taxation
Technology
Shock
How does a shortage affect prices of goods and services?
Increases prices
Known as the father of modern economics for writing The Wealth of Nations in 1776
Adam Smith
_________ is the fifth country with the highest GDP
India
The value of the next best alternative that must be given up or sacrificed in order to obtain something else
Opportunity cost
Over time, consumers have shifted towards healthier foods. In this situation, what is the non-price determinant and what happens to the demand for McDonald's.
Tastes and preferences, Decreases
What are the four main types of economic systems?
Traditional economy, command economy, market economy, mixed economy
In 1921, the Weimar Republic in Germany experienced a case of ________.
Hyperinflation
_______ is the country that exports the most tobacco
Brazil
When a business or individual focuses their resources and labor on a specific type of production or task to increase efficiency and gain a competitive advantage
What is the only non-price determinant (NPD) that can shift both supply and demand?
Expectations
What are the three economic goals for a country and how is each one measured?
Keep prices stable (measured with inflation rates), keep the economy growing over time (measured with GDP), and limit unemployment (measured with unemployment rate)
Who is considered the first Greek economic thinker?
Hesiod
What are the three countries with the highest inflation currently?
Argentina, Sudan, Turkey