______ are people who put together land, labor and capital to create new businesses.
Entrepreneurs
100
All goods and services we produce are _______.
Scarce
100
Scarcity always exists because...
...our needs and wants are not limited, but our resources are limited.
100
Shortages occur when...
...people have trouble supplying the goods and services at current prices.
100
_________ is the study of how people seek to satisfy their needs and wants by making choices.
Economics
200
The self-regulating nature of the marketplace is called ____.
the 'Invisible Hand.'
200
Peanut butter and jelly (or jam) are considered to be ______ goods.
Complimentary
200
What are the 3 factors of production?
Land, Labor, Capital
200
Countries often have to choose between producing military or consumer goods, a trade-off economists call ________.
Guns and butter
200
What are the 2 types of capital?
Human and Physical
300
The Law of Demand says that: When price goes up, demand goes _____.
Down
300
The 4 types of economies:
Traditional, Command, Market and Mixed
300
True/False: When prices increase for inelastic goods, people will continue to buy the goods anyways.
True
300
When supply and demand meet, this is called _____.
Equilibrium
300
Author of 'The Wealth of Nations.'
Adam Smith.
400
Define: Monopoly, Duopoly and Oligopoly
Monopoly = 1 firm
Duopoly = 2 firms
Oligopoly = A few firms
400
Chocolate is discovered to cure the flu, what will happen to the demand of chocolate?
Demand = increases
400
The doctrine that government should not intervene in the marketplace is called ______.
Laissez faire
400
The Law of Supply says that when price goes up, supply goes ____.
Up
400
On both the Supply and Demand graph, when S or D increases, the line shifts _____.
Right
500
What is the difference between physical capital and human capital?
Physical = tools (hammer, pencil, etc)
Human = skills, knowledge and experience one contains/gains
500
What is the difference between Perfect Competition and Imperfect/Monopolistic Competition?
P.C. = all goods are the same, no differentiation amongst firms.
I.C./M.C = differentiated goods (i.e. brand names, logos)
500
Define Price Ceiling and Price Floor.
P.C. = the max price (i.e. rent control)
P.F. = the min price (i.e. minimum wage)
... both as regulated by the government.
500
Define elastic and inelastic goods (what is the difference).
When prices increase...
Elastic goods = people stop buying it, or they buy less, because substitutes are available (i.e. shoes)
Inelastic goods = people continue to buy it (i.e. fuel)