Intro to Economics
One who makes purchases of goods and services for personal use is considered to be this.
What is a consumer?
Laissez-faire practices and individual freedom are most closely associated with this economic system.
What is capitalism / free market?
This is true of our resources and wants.
What is resources are limited and wants are unlimited?
In the market economy, opportunity cost decisions are made by who?
Who are producers AND consumers?
What is supply increases?
This is the basic economic problem facing all societies and individuals.
What is scarcity?
This economic system bases decisions on what has always been done in the past.
What is a traditional economy?
These are the goods used to make other goods and services.
What are capital goods?
This economic policy argues that government should limit, as much as possible, any interference in the economy.
What is laissez-faire?
This is the point on a curve where quantity supplied equals quantity demanded.
What is market equilibrium?
A person who makes goods or provides services is acting as this.
What is a producer?
This is the type of economic system where private business and some government regulation of business occur.
What is a mixed economy?
This is the factor of production dealing with resources that come from the earth.
What is land?
Name an item that has elastic demand and an item that has inelastic demand.
What are luxury items / wants have elastic demand and needs have inelastic demand?
According to the law of demand, as the price of an item increases, consumers will do what?
What is demand less of the item?
The value of time, money, goods, and services given up in an economic choice is called this.
What is the opportunity cost?
This is an economic system where all economic decisions are made by the government.
What is a command economy?
A cashier at a supermarket is an example of this factor of production.
What is labor?
This is the motivation for starting a business in capitalism.
What is to make money / profits?
Items that can be used in combination with each other, like peanut butter and jelly, are considered these types of products.
What are complementary goods?
Spending money for clothing rather than for a movie is an example of this.
What is a trade-off?
This is the major difference between a market economy and a command economy.
What is a market economy has more business competition and freedom to buy and sell?
Walt Disney created the most popular amusement park in the world. He is considered to be one of the most famous examples of this factor of production.
What is an entrepreneur?
This is a big reason why entrepreneurs are very important in our free market economy.
What is they take risks to create new products for us to buy?
The degree to which changes in price then cause changes in quantity demanded is called this.
What is elasticity?