The Business Cycle
What is Prosperity?
What is Opportunity Cost?
The quantity of goods and services consumers are willing to purchase at various prices at any given time
What is Demand?
The lowest point that can possible be avoided.
What is Depression?
The amount of goods and services produced and purchased
What is Economic Decisions?
The quantity of goods and services sellers are willing to offer at various prices at any given time
What is Supply?
Reduces spending and increases unemployment
What is Recession?
demand > supply
What is the Basic Economic Problem?
Occurs when there is an undersupply of product
What is Shortage?
Promotes confidence in the economy
What is Recovery?
increased prices = increased supply
decreased prices = decreased supply
What is Law of Supply?
Occurs when there is an over supply of products
What is Surplus?
The 4 stages of the business cycle
What is Prosperity, Recession, Depression, and Recovery?
Society decides which wants are more important
What is by Setting Priorities, Considering Opportunity Cost, and Evaluation Goals and Values?
increased prices = increased supply
decreased prices = decreased supply
What is the Law of Supply?