Vocab
Econ is all about
Your Choices
What is supply
The number of a product that is availiable
In a perfect world a high GDP should represent a....
Great economy
What causes inflation?
Too much money in our economy
True or False: Economic incentives can only be positive
False
Gross Domestic Product
What is demand
A consumers desire to purchase a product
What is the equilibrium quantity?
The quantity at which both the producer and consumer are happy
What comes after inflation?
Recession
What is the goal of an incentive?
To try and get you to do something or stop doing something
Define: Scarcity
A shortage
Law of supply says...
If the price goes up supply will increase, if the price goes down supply will decrease
What happens to the value of an object when it is scarce
It increases
Define Recession
Prices drop, unemployment rises
Tax Break, Pay raise, bonus
Define Inflation
Prices rising
Law of demand says...
If the price goes up demand will decrease, if the price goes down demand will increase
Why is GDP not a good measurement of our economy?
It doesn't take into account the things that affect normal people every day. Inflation, taxes, etc.
What comes after a recession if not fixed?
Depression
What is an example of a negative economic incentive?
Tax on certain products
What does PPC Stand for?
Production Possibilities Curve
On a S&D graph what shape should it form?
An x
What is the equilibrium price?
The price at which both the consumer and producer are happy
What MUST happen in order to fight inflation
Wages must rise
In the US what type of product do we have a negative incentive on?
Tobacco