Markets
What is the market where businesses sell goods and services to households?
Product Market
What type of economy relies on customs and traditions to make economic decisions?
traditional economy
What is the term for the limited nature of resources?
Scarcity
What does the circular flow model show?
The movement of goods, services, resources, and money in an economy.
Where is Mr. David not from?
Anywhere but Canada
What is the market where households sell their labor, land, or capital to businesses?
Factor Market
In which type of economy does the government make all economic decisions?
Command Economy
What do we call the decision to give up one benefit in order to gain another?
Trade-off
Who are the two main participants in the circular flow model?
Households and businesses.
Who was Jen's father from unit 1?
Mr. Holden
In the product market, who are the buyers and who are the sellers?
Buyers are households, and sellers are businesses.
What type of economy is characterized by private businesses operating in a competitive market?
market economy
What is the value of the next best alternative when a choice is made?
Opportunity Cost
What do households provide in the factor market?
Land, labour, capital
What is in the middle of the circular flow model?
The government
In the factor market, what do businesses provide in exchange for resources?
Wages, rent, interest, and profits.
What type of economy combines elements of market and command economies?
mixed economy
Provide an example of a personal trade-off.
Studying vs playing on your phone
What do businesses provide to households in the product market?
Goods and services.
Who lives in a pineapple under the sea?
Spongebob Squarepants
What is exchanged in the factor market?
Land, labor, capital, and entrepreneurship.
What is the main goal of a command economy?
To achieve equality and centralized control.
How does scarcity lead to trade-offs?
Because resources are limited, individuals must make choices.
What do households receive from the factor market?
Factor payments (wages, rent, interest, profit)
The government decides to set a price floor below equilibrium. What would this result in?
Nothing