Decision Making
What is the first step in the 6 step decision making process?
Define the problem
An increase in the average prices of goods and services in a country is known as
Inflation
This best describes what kind of economy?
The gov't regulates the amount, distribution, and price of everything produced.
Command
A "trade deficit" occurs when a country......
Imports (buy) > Exports (sell)
What has hands but cannot clap?
A clock
What economic concept is defined as the most attractive alternative that is given up when a choice is made?
Opportunity cost
The price people are paying for a Taylor Swift concert ticket is an example of what kind of inflation?
Demand-pull inflation
What are the 3 primary economic systems? What kind of economic system do we have here in the United States?
Command, Market, Mixed
United States -- is technically "Mixed", but sits heavily toward "Market" side of the spectrum as private ownership dominates most industries
Which economic principle is applied when a country can produce a specific good or service at a lower cost than any other nation?
Absolute advantage
What is the only food that never spoils?
Honey
This is the study of how people choose to use limited resources to satisfy their unlimited needs and wants.
Economics
Price of milk goes up which means Mrs. C now has to pay an extra 50cents for her Boba Milk Tea.
Cost-push inflation
What are the 3 factors of production
Natural (land), Human (labor), Capital resources
If a country specializes in the production of a good where it is relatively more efficient than in other areas, it is practicing which principle?
What is the fastest land animal?
*Bonus* - how fast in mph?
Cheetah
Bonus - 70-75 mph
Which of the following is considered the basic economic problem faced by both individuals and nations?
scarcity
What is it called when the quantity sellers are willing to offer matches the quantity buyers at willing to purchase.
Equilibrium price/ Market Equilibrium
This best describes what kind of economy?
Individual companies & consumers make the decisions about what, how, and for whom items will be produced.
Market Economy
Which economic measure includes the output of items produced within a country's borders, even if the resources are foreign-owned?
Gross Domestic Product (GDP)
I am an odd number. Take away one letter and I become even.
Seven
What are the 3 primary things that most businesses/individuals have a scarcity of when it comes to making economic decisions?
Time, Money, Energy
Demand Pull Inflation b/c increase in supply of money in circulation increase consumer purchases -- thus increase demand that drives up price, assuming supply stays about the same.
This best describes what kind of economy?
The gov't owns the mill that supplies steel to private construction firms.
Mixed Economy
What is primary negative effect of a country accumulating significant foreign debt?
Future income must be used to pay for past spending rather than infrastructure.
You see me once in June, twice in November, and not at all in May.
The Letter "E"