Economic Systems
What economic system answers the 3 basic economic questions through a central planning committee or government?
Command economy
What economic goal is defined as: ability make our own economic decision without interference from government?
Economic Freedom
What is the law of supply?
If price of a good goes up, then quantity supplied will go up. And if a price of a good goes down, then quantity supplied will go down
What is the definition of Economics?
The study of the use of scarce resources that have alternative uses
What economic system answers the 3 basic economic questions through producers and consumers?
Free Market Economy
What economic goal is defined as: a fair and just distribution of societies wealth?
Economic Equity
What is the law of demand?
If price of a good goes down, then quantity demanded will go up. And if price for a good goes up, then quantity demanded will go down
What is the definition of trade?
The exchange of goods and services from specialized countries
What economic system answers the 3 basic economic questions through both government intervention and producers and consumers?
Mixed Economy
What economic goal is defined as: economy produces more and better goods and services?
Economic Growth
What is a shortage?
Results when prices are too low and not enough of a product is available
What is opportunity cost?
The “value” of the next most likely choice for the use of a resource that is given up when making a choice
What economic system answers the 3 basic economic questions through societal customs?
Traditional Economy
What economic goal is defined as: the allocation of resources in such a way that the greatest number of consumers get what they want with the least amount of waste?
Economic Efficiency
What is a surplus?
Results when prices are too high and businesses how too much of a product
Describe Elastic Demand
When a small change in price results in a large change in quantity demanded
What are the 3 Basic Economic Questions?
What to produce? How to produce? For whom to produce?
What economic goal is defined as: the elimination of uncertainty for jobs; wages; and prices?
Economic Stability
What is market equilibrium?
The price at which the quantity demanded by consumers is equal to the quantity producers are willing to supply
Describe Inelastic Demand.
When a change in price results in a small change in quantity demanded