What is Economics?
(Unit 1)
(Unit 1)
People have unlimited wants but limited resources.
What is scarcity?
In this system, a central authority makes the basic economic decisions.
What is a command economy?
This business is owned and run by one person
What is a sole proprietorship?
This measures how much the quantity demanded responds to a change in price.
What is demand elasticity?
According to this law, producers usually offer more for sale when prices rise.
What is the law of supply?
Giving up your next best alternative when you make a choice is this cost.
What is opportunity cost?
In this system, economic activity is guided mainly by habit and custom.
What is a traditional economy?
This organization provides services without seeking financial gain for its owners.
What is a nonprofit organization?
A price change causes a relatively large change in quantity demanded.
What is elastic demand?
This graph shows how much producers will offer at different prices.
What is a supply curve?
Tools, equipment, machinery, and factories used to make products are this factor of production.
What is capital?
In this system, people and firms make many economic decisions in their own interest.
What is a market economy?
This business is legally separate from its owners and can sell shares of stock.
What is a corporation?
A price change causes a relatively small change in quantity demanded.
What is inelastic demand?
A government payment that encourages or protects an economic activity is called this.
What is a subsidy?
This measures the skills, knowledge, health, and abilities of people.
What is human capital?
A general rise in prices, which hurts people on fixed incomes, is called this.
What is inflation?
When two firms at different stages of making or selling a product combine, this occurs.
What is a vertical merger?
When a change in price causes a proportional change in quantity demanded, demand is described this way.
What is unit elastic demand?
Rent stays the same while the amount produced changes. Rent is this type of cost.
What is a fixed cost?
This diagram shows combinations of goods an economy can produce when its resources are fully used.
What is a production possibilities frontier?
Buyers and sellers willingly trade because each expects to benefit.
What is voluntary exchange?
Workers’ representatives and management use this process to negotiate employment matters.
What is collective bargaining?
If beef prices rise and customers switch to chicken, the availability of chicken is this factor affecting demand elasticity.
What are substitutes?
A firm sells 40 shirts at $25 each. Its total revenue is this amount.
What is $1,000?