Economic systems
The USA is best classified as which type of economy?
Mixed
What is an entrepreneur?
A person who starts and runs their own business?
What is inflation?
The general increase in the prices of goods and services across an economy over time.
Equilibrium occurs when
Supply=demand
What is a command economy also knon as?
Planned or centrally planned economy
What is profit?
Money that a business has left after paying all expenses.
What is a negative impact of inflation?
Priciing challenges and reduced consumer spending.
What is the law of supply?
Higher prices means more supplied
What are the main types of economic systems?
Traditional, Command, Market, and Mixed
These are the costs a business must pay to operate, such as rent, supplies, and wages.
expenses
what is a positive impact of inflation
Debt relief
What is the law of Demand?
Higher price means lower quantity demanded
In a traditional economy, economic roles are commonly determines by:
a) Gender
b) age
c) Family
d) all of the above
D: all of the above
This term describes a new or creative idea, product, or way of doing business.
Innovation
Built-in inflation is a cycle where...
Workers demand higher wages to keep up with rising prices.
What is a shifter in demand
Number of consumers in the market
What are three fundamental questions every economic system must answer?
1.What to produce?
2.How to produce?
3.For whom to produce?
This type of business is owned by one person and is the simplest form of business ownership.
sole proprietorship
If CPI rises by 5% in a year, inflation is approxmately
5%
What does diminishing marginal utility mean?
Additional satisfaction decreases with each unit consumed.