Supply and Demand
This law states that as the price of a good goes up, quantity demanded goes down.
What is the Law of Demand?
If demand changes a lot when price changes, demand is considered this.
What is Elastic Demand?
In this system, the government makes all economic decisions.
What is a Command Economy?
The resources used to produce goods and services: land, labor, capital, and entrepreneurship.
What are the Factors of Production?
The struggle between businesses to attract customers by offering the best value.
What is Competition?
This table lists quantities of a product that consumers are willing to buy at different prices.
What is a Demand Schedule?
This cost changes depending on how much is produced.
What are Variable Costs?
In this system, economic decisions are based on customs and traditions.
What is a Traditional Economy?
This type of resource includes water, soil, and minerals.
What are Natural Resources?
The idea that workers get more efficient when they focus on one specific task.
What is Specialization?
The point where supply and demand meet is called this.
What is the Equilibrium Price?
This type of cost stays the same no matter how much you produce.
What are Fixed Costs?
The United States has this type of economy, a blend of market and government regulation.
What is a Mixed Economy?
The workers who provide physical and mental effort in production.
What is Labor?
This measures the total dollar value of all goods and services produced within a country in one year.
What is GDP?
When supply is greater than demand, this occurs.
What is a Surplus?
The extra cost of producing one more unit of output.
What is Marginal Cost?
This system is also called capitalism, where individuals own the factors of production.
What is a Market Economy
People who take risks to start businesses and innovate.
Who are Entrepreneurs?
Goods that are used together, like peanut butter and jelly.
What are Complements?
The economic term for the usefulness or satisfaction a consumer gets from a good.
What is Utility?
A decision-making process where you weigh the benefits versus the costs of an action.
What is Cost-Benefit Analysis?
Karl Marx predicted this system would replace capitalism after class struggle.
What is Communism?
The human-made goods like machines and tools that help produce other goods.
What is Capital?
Goods that can replace each other, like Coke and Pepsi.
What are Substitutes?