A place where people buy AND sell goods or services.
Examples: Costco, Flea Market, Amazon.com, Target, Stock Market
100
What is the definition of a “neutral good”?
Demand stays the same, as income goes down or up
Example: Toothpaste
100
What is the definition of a “supply”?
Willingness and ability of a seller to produce a good or service
Example: Tapia knows how to play volleyball (kind of), he has a volleyball, volleyball net, and he is willing to teach volleyball to kids. Tapia has everything to "supply" a kids volleyball class.
100
What is a "Flat Tax"?
Everybody pays the same percentage of their income, no matter how much their income.
Ex: Both workers pay 10% flat tax
Worker 1 makes $20,000 per year [$2,000/year in taxes]
Worker 2 makes $500,000 per year [$50,000/year in taxes]
200
What is the definition of a "want"?
Something we desire/want to have
Example: Mr. T. wants to go to the Giants game
200
What is the definition of “demand”?
When you want something AND have the ability to buy it.
Example: I want a Coca-cola AND I have $5, so I have the ability to buy it.
200
What is the definition of a “complimentary good”?
When you buy one thing, you will probably buy this too.
Example 1: Hot dogs and Hot dog buns
Example 2: Salt and Pepper
Example 3: Car and Gasoline
200
What is the equation for the "Law of Supply"?
If P ^ then Qs ^
If P v then Qs v
P = Price
Qs = Quantity Supplied
200
What is a Progressive Tax?
As your income goes up, the tax percentage you pay goes up.
Ex: Worker 1 pays 6%, while worker 2 pays 40%
Worker 1 makes $20,000 per year [$1,200/year in taxes]
Worker 2 makes $500,000 per year [$200,000/year in taxes]
300
What is the definition of a “resource”?
Something used to produce a product or service.
Example: Wood, plastic, water, capitol ($), labor, water, etc.
300
Draw the equation for Law of Demand.
If P^ then Qd v
If Pv then Qd ^
P = Price
Qd = Quantity Demanded
300
What are five examples of "substitute good".
Coke and Pepsi
Corolla and Civic
Tylenol and Advil
Starbucks and Peet's
Safeway and Albertson's
many, many, many more!
300
What is an example of "direct relationship"?
If it rains on Monday, their will be more traffic on Monday
or
If I eat food, I am not hungry
300
True or False:
Flat Tax favors the wealthy.
True
400
What is the definition of a “scarcity”?
When our wants are greater than our resources
400
What is the definition of a “normal good”?
Demand goes up, as income goes up.
Example: Baseball game tickets
400
Elastic Demand:
If P^ then TR ____?
If Pv then TR _____?
Elastic Demand:
It P^ then TR v
If Pv then TR ^
400
What is the definition of a “subsidy”?
When the government pays for certain actions or things
Example:
1. The U.S. Federal government subsidizes corn for farmers 2. CA State government subsidizes college tuition for Community/Junior College students.
400
True or False:
Progressive Tax favors the poor
True
500
How many goods, services, or both goods AND services are there?
Cell phone Chair
Wallet Car
Massage Childcare
Food College
Gardener Dentist
5 Goods
4 Services
1 Good and Service
500
What is the definition of an “inferior good”?
Demand goes down, as income goes up
Example: McDonald's burger (inferior) vs Applebee's burger
500
Inelastic Demand:
If P^ then TR ___?
If Pv then TR ___?