Vocab Vault
This term describes the limited availability of resources compared to people's unlimited wants and needs
What is scarcity
According to the "Law of Demand," this usually happens to the number of buyers when a company raises its prices.
What is people buy fewer products (demand decreases)
In this type of economy, the government makes almost all decisions, including what to produce and what to charge.
What is a Command Economy?
This is a specific tax placed on imported goods to make them more expensive.
What is a Tariff?
Between a video game, water, a movie ticket, and candy, this one is considered a "need".
What is water?
This is the extra cost or benefit you give up when you choose one option over another.
What is opportunity cost
If a smartphone company faces a shortage of microchips (low supply), this is the most likely result for the price of the phone.
What is the price will increase?
This economic system is based on customs, traditions, and the ways ancestors produced goods
What is a Traditional Economy?
If a country places a new tariff on steel, car manufacturers will likely see this happen to their production costs.
What is costs will increase (making cars more expensive)?
Marketing influences consumer spending primarily by doing this.
What is making people aware of products and wanting to buy them?
This term refers to the quantity of a product that sellers are willing to provide at different prices.
What is supply
When demand for a product is higher than the available supply, the price will do this.
What is increase?
In this system, individuals make most decisions and businesses compete with each other.
What is a Market Economy?
This is a scenario that shows a positive impact of international trade.
What is a country importing medicine it cannot produce?
A store offers a "Buy One, Get One Free" deal. This is the most likely effect on consumer behavior
What is consumers may buy more than they planned?
This term refers to the desire and ability of people to buy a product at different prices
What is demand
This is the main reason why people must make economic decisions every day
What is because resources and goods are limited (Scarcity)
This type of economy combines both government control and individual choice.
What is a Mixed Economy?
This is the main purpose of the government implementing a tariff.
What is to make imported goods more expensive (to protect local business)?
While saving is safe, this financial strategy is often better for long-term growth because the potential for profit is higher.
What is Investing?
Putting money or resources into something with the goal of making more money or achieving a specific goal
What is an investment
A local bakery lowers prices to attract more customers. While this is a "positive" for customers, it could be a "negative" for the bakery for this reason
What is lower profits?
In a Market Economy, these two factors are the main drivers of prices and production.
What are Supply and Demand?
True or False: An economic decision is defined as choosing between alternative uses of limited resources.
What is True?
If you spend $5 on candy instead of putting it in a piggy bank, the $5 you could have saved represents this.
What is Opportunity Cost?