1
Meeting place for buyers and sellers to conduct voluntary economic transactions
Market
An excess of imports over exports
What is a Trade deficit
The economic problem of having unlimited needs and wants with only limited means to satisfy them
Scarcity
What is the price at which qty demanded = qty supplied?
Equilibrium price
What is the major positive effect of Free Trade?
Economic Growth
An excess of exports over imports
Trade Surplus
A diagram that represents the maximum combinations of products available with fixed resources and technology
What is the production possibility curve
If technology for milking cows increases and becomes more efficient, then the supply curve will:
-Shift Right
If the price of a product increases, What happens to quantity supplied?
Quantity supplied increases
2. An increase in the price of milk causes a decrease in the demand for cereal. The two products are
What is complementary products
On a PPC, a point "on the line" represents___
efficiency
If the price of a product decreases, what happens to quantity demanded?
increases
TRUE OR FALSE:
CAPITALISM ALLOWS FOR PRIVATE OWNERSHIP OF PROPERTY
TRUE
The demand curve is ____ sloping
downward
What are the 2 major advantages created in a market?
Absolute Advantage
Comparative Advantage
Competition causes prices to ____
decrease or drop
The most important factor affecting both supply and demand is ___
price
What is the major negative side effect of Free Trade?
Increased unemployment for domestic workers
Identify 3 "determinants" or "shifters" of supply.
Productivity
Production Cost
Government Regulations
Name the four market structures from most to least competitive.
What is perfect competition, monopolistic competition, oligopoly, and monopoly?
What market structure has no examples in the real world?
Perfect(Pure) Competition
A price ABOVE equilibrium would cause a ___
surplus
A price BELOW equilibrium would cause a ___
shortage
Identify 3 "determinants" or "shifters" of demand
Income
Consumer preferences
Population