Opportunity Cost
Starbucks has the choice whether to launch a new iced coffee or a new flavor of refresher. They choose to add a Oreo Iced Coffee to their menu. What is the opportunity cost of their decision?
The refresher drink
Supply is how much of something is available for people to buy. Demand is...
how much people want to buy that product
_____ is the financial gain received by selling something for more than it cost to make it.
Profit
The money citizens pay to the government is called...
a tax
Someone who acquires of buys goods and services is called...
a consumer
Our local government is trying to decide whether to establish a new public library or a new recreational park. They choose to create a brand new parks with baseball fields, picnic areas, and playgrounds. What is the opportunity cost of their decision?
Public library
If a store has too much of a product, the price will _____, hoping that customers will buy more of it.
lower
In a market economy, people have the freedom to...
choose what to produce and what to consume
The government collects a tax on the money people earn called...
income tax
Someone who makes a good or provides a service is called...
A producer
Ms. Morris is trying to decide whether to go to the beach this summer or save her money to pay for rent and other expenses. She chooses to save her money. What is the opportunity cost of her decision?
A fun summer vacation at the beach
The law of supply and demand determines the ____ of a product.
price
In a market economy, the ______ does not make rules about what and how much gets produced.
government
What determines the amount of sales tax a person pays?
how much a customer spends/buys
Competition leads to _____, which is the process of developing new and better things.
innovation
Disney World has some new ideas for rides at the parks. They can either create a new ride based on the Star Wars movies OR a new Marvel themed roller coaster. They choose the Star Wars ride. What is the opportunity cost of their decision?
Marvel themed roller coaster
It is the day before Halloween and the stores are almost out of candy. What could you say about the supply and demand of the candy?
Supply is low. Demand is high.
Owning something gives you the right to _____ or _____ it.
buy or sell it
What are the three different types of tax we discussed last week?
Income, sales, and property
______ means a limited amount of resources available.
Scarcity
Give a definition for the term "opportunity cost."
The choice you give up when you are making decisions
There is an ______ relationship between supply and demand, meaning when one goes up, the other goes down.
inverse
To keep everyone producing, making profits, and buying things, __________ must be balanced
supply and demand
The _____ government uses tax money to run the space programs and deliver mail, among other services.
federal
The opposite of a market economy is a...
Command economy