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19 Cards in this Set
- Front
- Back
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Supply
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The various quantities of a good/service that producers are willing to sell at possible market prices
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Demand
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The desire, willingness, and ability to buy a good/service
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Need
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Requirements for survival
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Want
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A luxury; Things we want to have; make life enjoyable
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Law of Scarcity
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1) All things are limited
2) In order to get something, you must give something up |
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Law of Supply
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As price goes up, supply goes up
As price goes down, supply goes down |
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Law of Demand
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As price goes up, demand goes down
As price goes down, demand goes up |
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Diminishing Marginal Utility
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Decreasing satisfaction/usefullness as additional units of the product are consumed
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Substitutes
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A competing product that consumers can use in place of another
ex. Coke & Pepsi |
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Complements
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Product often used with another product
ex. Wii & Wii games |
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Shortage
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Situation in which quantity demanded is greater than quantity supplied
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Surplus
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Situation in which quantity supplied is greater than quantity demanded
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Net Salary
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The salary you get after taxes
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Gross Salary
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Your total salary
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Equilibrium Point
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The price at which the amount producers are willing to supply is equal to the amount consumers are willing to buy
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Factors of Production
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1)Natural Resources-"gifts of nature"
2)Labor- employees 3)Capital- tools, machinery, etc. to make other products 4)Entrepreneur(founder) ex. Starbucks 1)land for store & parking 2)waiters & cooks 3)coffee machines, oven 4)owner/manager |
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Circular Flow of Economic Activity
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1)Consumer Sector -consumers earn $
2)Business Sector -individuals earn incomes & spend it in product markets 3)Government Sector -provide goods & services ex. national defense, health, education, transportation 4)Foreign Sector - we buy and sell to this sector |
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Factor Markets
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Laborers & ways to make money ex. wages, salaries, tips, rent, stocks, interest
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Product Markets
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Offer goods & services for sale
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