What is Economics?
Choices, Costs, and Consequences
What are the 3 C's of economics?
Type of economy based on customs and closely tied to the land
What is a traditional economy?
Factor of production that involves natural resources
The desire, willingness, and ability to pay for a good or service.
What is demand?
What are price and quantity?
What is the basic economic problem?
Scarcity
The type of economy controlled directly by the government.
What is a command economy?
Factor of production that includes workers
What is labor?
The law of demand states....
As price goes up, quantity demanded goes down
If there is a decrease in demand, the curve shifts to the ____.
What is left?
Study of economics on a small scale is ________.
Study of economics on a large scale is ________.
What is microeconomics?
What is macroeconomics?
Type of economy that is based completely on supply and demand with no government involvement
What is a market/free/laissez faire economy?
Factor of production that describes the tools and machinery used to make a good or service.
What is capital?
The only thing that changes quantity demanded
What is price?
If people expect a snowstorm, then the demand curve for grocery stores will shift to the _____.
What is right?
The next-best alternative; the thing you give up when you make a decision.
What is opportunity cost?
Type of economy that features both command and market; type the US has.
What is a mixed economy?
Factor of production that involves the implementation of new ideas and new products
What is entrepreneurship?
People tend to buy more of these types of goods when their income decreases
What are inferior goods?
Movement ALONG (up or down) the demand curve indicates_____
What is a change in quantity demanded or a change in price?
What are the 3 questions that must be answered due to scarcity?
What to Produce, How to Produce, and For Whom to Produce?
Author of The Wealth of Nations and spoke of the "Invisible Hand" in laissez-faire economics.
Who is Adam Smith?
What is the specific term for the skills, education, talents, and abilities people bring with them to a job?
What is human capital?
If the number of people living in an area increases, this happens to demand...
What is an increase in demand?
If there is a change in prices of these two types of goods, then the demand curve for the original product may shift as a result.
What are substitutes and complements?