Terms 1
The study of the decisions that go into making, distributing, and using goods and services.
What is Economics?
An economy is based on customs and traditions.
What are traditional economy?
A minimum price set by the government that can be charged for goods and services
What is price floor?
Describe opportunity cost.
What is ...?
Something you give up to get something else. ..
An example of a command economy country.
What is China, North Korea, Cuba...?
When supply exceeds demand, a ____ occurs.
What is a surplus?
An economy in which supply and demand determine what is produced is a _____.
What is market economy?
A maximum price set by the government that can be charged for goods and services
What is price ceiling?
Two advantages of a command economy.
1. Change and improvements in the economy can occur rapidly
2. Public services such as education and health care cost very little or nothing at all
Richest country in the world.
What is Qatar. Luxembourg?
The degree to which demand is affected by price is called _____.
What is demand elasticity?
Loyalty programs and increases in wages are examples of _____.
What are incentives?
The economic principle that requires people to decide which goods and services to use or not use due to limited resources and unlimited wants
What is scarcity?
Three advantages of a market economy.
1. Individual freedoms for everyone
2. Adjust to change gradually
3. Limited government interference
4. Not controlled by a central decision maker
5.Variety of goods and services
6. Higher level of consumer satisfaction
How many member states are there in the European Union?
What is 28?
The price at which there are no overages or shortages of goods is the _____.
What is equilibrium point?
Insurance companies, brokerage firms, and investment bankers are examples of _____.
What are non-depository institutions?
When price has little influence on demand for a product.
What is inelastic demand?
Describe specifically how businesses offer incentives to:
1. workers
2. consumers
workers - wages, recognition
consumers - savings, rewards programs.
Which country was suspended from the G8 summit that is now G7?
What is Russia?
_____ is the maximum price that can be charged for goods or service and is set by the government.
What is price floor?
All goods or services an economy produces require the four factors of production. Name them.
What is land, labor, capital, and entrepreneurship?
How much consumers are willing and able to buy at a certain price.
What is demand?
Describe tax deductions and tax credits as government-sponsored incentives.
Tax deductions - reduce the taxable income upon which tax payers calculate the amount they owe the state or federal government.
Tax credit- reduces the total tax owed after all tax deductions have been applied.
The G7 is a group of seven most advanced economies. Name them.
What is Canada, France, Germany, Italy, Japan, the United Kingdom and the United States?