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43 Cards in this Set
- Front
- Back
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List the three basic economic questions every society must answer. |
What to produce? How to Produce? For Whom to Produce? |
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What term refers to the value of what you give up by choosing one alternative over another? |
opportunity cost |
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The study of how people choose to use scarce resources to satisfy their wants is called _________ |
economics |
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What is the term used to describe the money taken out of a paycheck before the worker receives it? |
withholding |
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What term refers to the alternative you give up when you make an economic choice? |
trade-off |
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What term refers to using resources to their fullest capability to produce the maximum amount of goods and services? |
efficiency |
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What term refers to the ongoing tension of not having enough resources to meet human wants? |
scarcity |
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Which type of economic system does the information in the above table describe? |
traditional |
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What is the most common type of economic system? |
mixed economy |
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Which type of economic system does the information in the above table describe? |
command |
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Which factor would cause a change in quantity supplied? a. a change in price b. an increase of suppliers in the market c. a decrease in the price of inputs d. new technologies available for production |
a. a change in price |
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A state of disequilibrium happens when an imbalance exists between ________________ and _____________ |
quantity supplied and quantity demanded. |
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What does the government use to try to influence economic behavior? |
tax incentives |
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How do investors commonly maximize returns and limit risks? |
diversifying investments |
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What economic term refers to a percent of the total sales in a market? |
market share |
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What economic term refers to benefits awarded to encourage people to act in certain ways? |
incentives |
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Which factor would cause a decrease in demand? a. a decrease in the price of substitute goods b. an increase in price c. a decrease in price of complementary goods d. an increase in income |
a. a decrease in the price of substitute goods |
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What economic term refers to the maximum amount that sellers may charge for a good or service? |
price ceiling |
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Which factor would cause an increase in supply? a. an increase in price b. a decrease of suppliers in the market c. a decrease in the price of inputs d. a decrease in labor productivity |
c. a decrease in the price of inputs |
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What economic term refers to the minimum that buyers must pay for a good or service? |
price floor |
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What is the name of the payroll tax that is taken out to cover Medicare & Social Security? |
FICA |
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product price x quantity sold = ____________ |
total revenue |
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What do both elasticity of demand & elasticity of supply measure? |
responsiveness to price |
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What is the most common reason for supply to be inelastic? |
the difficulty of changing the amount produced |
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fixed costs + variable costs = ___________ |
total cost |
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marginal revenue = _____________ |
price |
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The demand for a product is considered __________. if the quantity demanded changes significantly when price changes. |
elastic |
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What economic term refers the state of disequilibrium resulting from quantity demanded being greater than quantity supplied? |
shortage |
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Why do companies engage in competitive pricing? |
to increase their market share |
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What state of disequilibrium can be caused by a price ceiling? |
a shortage |
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What economic term refers the state of disequilibrium resulting from quantity supplied being greater than quantity demanded? |
surplus |
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total revenue - total cost = _____________ |
profit |
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Which of the following categories is most likely to have inelastic demand? a. godds that have many substitutes b. goods that have many complements c. goods that have no substitutes d. goods that have no complements |
c. goods that have no substitutes |
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What acts as the incentive to motivate producers to increase supply? |
profit |
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How does the market allocate goods or services? |
price |
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ppc |
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demand curve |
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demand & supply curve |
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supply curve |
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List the Factors of Production |
Land, Labor, Capital, Entrepreneurship |
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List the Factors of Demand |
income market size consumer tastes consumer expectations substitutes complements |
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List the Factors of Elasticity of Demand |
substitutes proportion of income necessity vs. luxury |
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List the Factors of Supply |
input costs labor productivity technology government action producer expectations number of producers |
