Vocab
This is the value of the next-best alternative that is given up when making a choice.
What is opportunity cost?
According to the law of demand, when the price of a good increases, this generally happens to quantity demanded.
What is it decreases?
These are the four resources used to produce goods and services: land, labor, capital, and entrepreneurship.
What are the four factors of production?
This economic system is based on private ownership and competition, with individuals and businesses making many economic decisions through markets.
What is capitalism?
This technology has become so common among high school students that more than half of U.S. teens surveyed in 2025 said they had used it daily for schoolwork.
What is artificial intelligence (AI)?
Adam Smith used this term to describe how individual choices and self-interest can help coordinate economic activity through market forces.
What is the Invisible Hand?
One of these occurs when quantity demanded is greater than quantity supplied. The other occurs when quantity supplied is greater than quantity demanded.
What are a shortage and a surplus?
Unlike labor, which refers to human work and effort, this factor of production includes machines, tools, and factories used to produce goods and services.
What is capital?
This economic principle argues that the government should have minimal interference in business and economic activity.
What is laissez-faire?
This phenomenon occurs when a person remembers an event, phrase, logo, or detail incorrectly—but believes the memory is accurate.
What is the Mandela Effect?
This economic concept measures how responsive quantity demanded or supplied is to a change in price.
What is elasticity?
When consumers want to buy more of a product than producers are willing to sell, this tends to happen to the price.
What is the price increases?
Absolute advantage means producing more with the same resources. This type of advantage means producing a good at a lower opportunity cost.
What is comparative advantage?
In a capitalist economy, businesses compete for customers. This competition can encourage businesses to improve quality, lower prices, and do this.
What is innovate?
This is the only letter of the alphabet that does not appear in the name of any U.S. state.
What is Q?
This occurs when a producer can make a particular good at a lower opportunity cost than another producer.
What is comparative advantage?
Pepsi and Coca-Cola are substitutes. If the price of Pepsi increases, consumers may buy more Coca-Cola. Therefore, the demand for Coca-Cola will do this.
What is increase?
Countries may focus on producing goods for which they have a comparative advantage and then exchange goods with other countries. This economic strategy can increase efficiency and total production.
What are specialization and trade?
Insulin is considered relatively inelastic because it is a necessary medication and people who need it are unlikely to greatly reduce their consumption when its price changes.
What is inelastic demand?
This actor/actress has recently become the highest grossing actor of all time.
Who is Tom Holland?
This model shows the maximum combinations of two goods an economy can produce using its available resources and technology. It also demonstrates scarcity, trade-offs, and opportunity cost.
What is a Production Possibilities Frontier, or PPF?
At this point in a market, the amount producers are willing to sell equals the amount consumers are willing to buy. Explain why this point is important.
What is equilibrium?
An economy can use its resources to produce either 100 computers or 200 cars. If it chooses to produce more computers, it must give up some car production. Identify the economic concept illustrated by giving up some car production.
What is opportunity cost?
A business sells a product with inelastic demand and wants to increase total revenue. The business raises its price. Explain why this strategy may increase its revenue despite selling fewer units.
What is because quantity demanded changes relatively little when price changes?
Dolly Parton, the country music icon who recently passed away, finished her career with over 50 Grammy nominations, and this many Grammy wins. (Within 1)
What are 11 Grammy Awards?