What is ππ¬πΈπ·πΈπΆπ²π¬πΌ?
The next best alternative that you give up when making a choice or decision.
What is opportunity cost?
In this economic system, a centralized authority (often the government) makes all the decisions about what gets made, how it gets made, and who gets it.
What is a command economy?
The most common type of business organization in the United States, owned and managed by a single individual.
What is a sole proprietorship?
An economic principle that describes a consumer's desire and willingness to pay a price for a specific good or service.
What is demand?
This term describes the total amount of a specific good or service that is available to consumers from producers.
What is supply?
This branch of economics studies the large-scale or overall economy, dealing with phenomena like inflation, unemployment, and GDP.
What is macroeconomics?
Every economic system must answer these three fundamental questions: What goods should be produced, how should they be produced, and... ?
For whom should they be produced?
A form of business organization owned by two or more co-owners who share profits and responsibilities.
What is a partnership?
The law of demand states that as the price of a good or service decreases, this happens to consumer demand.
What is it increases?
This fundamental principle states that, all else being equal, as the price of a good increases, the quantity supplied will also increase.
What is the Law of Supply?
This branch of economics focuses on the actions of individuals and specific businesses, such as supply, demand, and personal finance.
What is microeconomics?
The United States operates under this type of economy, combining free market principles with some government regulation.
What is a mixed economy?
A major disadvantage of sole proprietorships and partnerships, meaning the owners are personally responsible for all business debts and losses.
What is unlimited liability?
When the news continues to report that inflation is rising and the economy is headed toward a recession, this usually happens to the consumer demand for non-essential products.
What is it decreases?
This type of graph visually illustrates the relationship between the price of a good and the quantity supplied, typically sloping upward and to the right.
What is the supply curve?
The three fundamental questions every economic system must answer: What to produce, for whom to produce, and this third action.
What is how to produce?
Because currency is scarce, this economic method is heavily relied upon in traditional systems.
What is bartering?
A large, complex corporation made up of four or more unrelated businesses, operating to protect the parent company against economic downturns in a single industry.
What is a conglomerate?
This type of demand is highly sensitive to price changes, meaning a small hike in price will cause a massive drop in quantity demanded.
What is elastic demand?
This principle means that all other economic variables and conditions are held constant when analyzing a change in supply.
What is ceteris paribus?
The price at which the quantity demanded by consumers exactly equals the quantity supplied by producers.
What is the equilibrium price?
A synonym for a market economy where individuals and private businesses own the factors of production.
What is capitalism?
A major disadvantage of a corporation where the business's profits are taxed once at the corporate level and again as personal income.
What is double taxation?
If the price of coffee increases, this happens to the demand for its complementary good, coffee creamer.
What is it decreases?
Economists use this specific measure to determine how drastically the quantity supplied responds to a change in price.
What is the elasticity of supply?