Economics Overview
What economic system is characterized by private ownership of resources and businesses, competition, and limited government intervention?
What is Capitalism (or Free Enterprise) or a market economy?
Not having enough resources to meet all wants.
What is scarcity?
Demand is from the perspective of the ____________
What is the consumer or buyer?
According to the supply curve, as price increases, quantity supplied ___________________
What is increases?
(A direct relationship)
A decrease in the price of tea would _____ the _____ for coffee.
What is decrease the demand?
(price of related goods - substitutes)
The law of demand is when the price of a good rises and, ceteris paribus, quantity demanded will fall.
What is True?
Ceteris Paribus means _____.
What is "all other things being equal"?
DOUBLE JEOPARDY!! The term that represents the point where the demand curve and supply curve cross is ________.
What is Equilibrium?
A product that must be used in conjunction with another product, like mustard on a hot dog.
What is a compliment?
The main goal of a supplier.
What is the "profit motive"?
A technological advance or training of employees could cause a shift in
What is the supply curve?
The production possibilities curve assumes that: 1) resources do not change. 2) technology improves over time. 3) the economy does not use its resources to full capacity. 4) the economy cannot shift resources from producing one output to producing another.
What is false? PPC assumes that the economy uses its resources to full capacity.
The 4 Pillars of Free Enterprise (the Rights of Capitalism)
What are the Rights to Private Property, Freedom of Choice, Keep a Profit from Business, and Fair Competition?
An __________ is a good whose demand drops when people's incomes rise.
What is an inferior good?
As prices decreases, quantity demanded _______
What is increases?
Which of the following would shift the supply curve for copper to the right? a) a new technology that reduces the cost of mining copper, b) an increase in the price of copper, c) a decrease in the price of copper, and d) a new excise tax on copper
What is a) the new technology that makes input cost decrease?
(the profit would increase)
DOUBLE JEOPARDY! What do stores do when they have excess demand?
What is increase the price?
The law of supply is when the price of a good falls and ceteris paribus, the quantity supplied will rise.
What is False? when price falls, the quantity supplied will fall as well.
Economic Growth is measured by ____?
What is GDP (Specifically Real Gross Domestic Product Per Capita)?
The term that explains your work, when you take a vacation from your job and spend uninterrupted time with your family, would be referred to as .
What is opportunity cost?
The phrase for when consumers will buy more of a product at any given price is _______.
What is increase in demand or demand shift right?
A movement along the curve is referred to as change in _______.
What is quantity supplied?
A decrease in the cost of coffee beans would ______ the ______ for coffee.
What is increase the supply?
(price of input)
Economic Growth is the rise in prices and fall of purchasing power.
What is False? Inflation is the rise in prices and fall of purchasing power or Economic Growth is the ability of an economy to produce greater levels of output.
DOUBLE JEOPARDY!! The concept of an efficient market that arises from people and businesses making decisions for their self-interest.
What is the "invisible hand?"
What is the term for a table or graph that shows the relationship between the price of a product and the quantity supplied by producers?
What is the supply curve?
The shifters of demand are _______, ____, ___, ____ and ____.
What are # of buyers, tastes, income, expectations of buyers, and price of related goods?
The shifters of supply are ___, ___, ____, ____, ____, and _____.
What are # of sellers, technology, input prices, taxes/subsidies, expectations, and price of other goods/services?
When quantity supplied matches quantity demanded
What is equilibrium?
The law of demand states that there is an inverse relationship between price and consumption.
What is true?