Basics
These are the three types of economies we covered.
What is traditional, command, and free market?
This is the amount of goods or services that must be done without to obtain some other good or service.
What is opportunity cost?
This is when supply is greater than demand.
What is a surplus?
This is the meeting of price and quantity.
What is market equilibrium?
This coordinates economic activity in a command economy.
What is the government?
This describes the reality that what everybody wants adds up to more than there is.
What is scarcity?
This coordinates economic activity in a market economy.
What are prices?
A price floor results in this.
What is a surplus?
In economics we shouldn't talk about solutions, rather we should talk about _______.
What are trade offs?
Goods have intrinsic value. [True / False]
What is False?
These are 3 of the 4 factors of production.
What is land, labor, capital, or entrepreneurship?
This is the turning of inputs into outputs.
What is production?
This is how a price floor is usually enacted by the government, particularly with agriculture.
There can be a surplus of a product while people experience a scarcity. [True / False]
What is True?
This model shows the movement of goods and services through an economy.
What is the Circular Flow Model?
A decision can be economic without money being involved [True or False]
What is True?
This error in economic thinking reflects the belief that destruction of good or services can lead to greater economic growth.
What is the Broken Window Fallacy?
Price controls are very popular _______ tools, regardless of efficiency.
What is political?
This is an example of an elastic product and why.
What is:
steak, cars, etc.
This reflects the reality that each additional purchase of a product is less satisfying.
What is the Principle of Diminishing Marginal Utility?
This is the percentage change in demand resulting after a price change.
What is elasticity of demand?
The price one producer is willing to pay is the price other producers are _______ to pay.
What is "forced?"
These are the three categories that determine who gets products when prices are eliminated or a shortage exists.
What is Luck, Waiting, and Corruption?
This is the relationship between the price of baseball gloves and the demand for cheese.
What is - Mr. Gaines is the judge.
High prices in low-income neighborhoods are often attributed to the high cost of _____, due to ______.
What is insurance and high crime?