Incentives
What is an Incentive?
Something that motivates people to do something
What is economics?
Study of decision making in which resources are limited
What is the Business Cycle?
The Business Cycle illustrates the alternating intervals of growth and decline, tracking the GDP.
What is a market?
Any structure that allows buyers and sellers to exchange goods, services and information
What are the two parts of demand?
Willingness to purchase and ability to pay
What are two types of Incentives?
Possible answers - Tax credits, Profit sharing, Stock options, Subsides
What is the difference between Scarcity and Shortage?
Scarcity - Demand for good is greater than ability Shortage - Quantity demand in greater than quantity supplied
which of the following is NOT part of the business cycle? Trough, Recession, Expansion, Top
Top
What are market structures?
How industries are classified based on their degree of competition for goods and services
what is change in demand
when something else changes and shifts a curve left or right
What is NOT a type of positive incentive? Tickets, Bonuses, Raises, Discounts
Tickets
Name two types of Economic Systems
Possible answers - Traditional, Command, Communism, Market, or Mixed
What is the difference between Bull Market and Bear Market?
Bull - Economic growth -- Bear - Economics Decline
What are two types of market structures?
Possible answers - Pure/ Perfect competition, Monopolistic Competition, Oligopoly, Monopoly
what is change quantity demand
when price changes
What are NOT Industries with Incentives for Consumers? Solar panels, Space Travel, or Electric vehicles
Space Travel
Define Economic systems
A way a group produces wants and needs
What is inflation ?
A rising prices in the economy
What is the difference between Monopoly and Oligopoly?
Monopoly has ONE firm controlling the market and Oligopoly has a few large firms dominating it
What is supply?
The quantity of a good or service that producers are willing and able to offer
What are 3 examples of negative incentives?
Possible answers - Fines, fees, dock in payments, demotions, or tickets
Define market price
The price goods and services can be purchased and sold
What are interest rates?
A the rate of interest that you owe on an amount borrowed
Define Pure/ Perfect competition
Exist in theory, a type of competition with a large number of buyers and sellers who are well informed, identical products
what kind of relationship does supply and demand have
An inverse relationship