Economics
When the demand for a good or service is greater than the availability of the good or service.
This is having a limited quantity of resources to meet unlimited wants.
what is scarcity?
An economy where both the government and individuals play roles in production and consumption
What is a mixed economy?
An economic system where all decisions are based on customs, traditions, and beliefs.
What is a traditional economy?
The direct trading of goods and services between people without the use of money
What is barter?
This Latin phrase means “all other things being equal” and is used to isolate the effect of one variable in economics.
What is ceteris paribus?
People or businesses that buy or consume products and services.
What is a consumer?
Something done in exchange for money
What are services?
Products that can be bought or sold
What are goods?
when goods and/or services are brought into your country
import
What grade you recieve if you do not retake missed test ?
0 marks
This term describes the rise in average costs when a firm becomes too large, often due to coordination and communication problems.
diseconomies of scale
The study of how people meet their needs and wants
What is economics?
When there is high supply and low demand, what happens to price?
Decrease
when goods and/or services are shipped to another country
export
Do you have to submit homework when you were absent last lesson?
Yes
An economic system in which the government makes all the economic decisions and sets all the prices and wages
What is a command economy?
This concept, described by Adam Smith, increases productivity when workers specialize in specific tasks.
division of labour
creative, original thinkers who are willing to take risks to create new businesses and products
entrepreneurs
only allows a specific amount of certain items to be imported during a specified period of time
quota
If demand is price elastic, a 5% decrease in price will cause this type of change in total revenue.
What is an increase in total revenue?
the factories, machines, technology, equipment, etc. that people use to make products to sell
What are Capital Goods?
This is the additional output produced when one more unit of a variable input, such as labor, is added, while other inputs remain constant.
marginal product
A monopoly can earn long-run abnormal profits because of these barriers, which prevent new firms from entering the market.
barriers to entry
When demand is unitarily inelastic, a 10% increase in price causes this percentage change in quantity demanded.
10% decrease
An effective price ceiling set below equilibrium creates this outcome, often leading to black markets and long queues.
what causes it?
shortage