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43 Cards in this Set

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List the three basic economic questions every society must answer.

What to produce?


How to Produce?


For Whom to Produce?

What term refers to the value of what you give up by choosing one alternative over another?

opportunity cost

The study of how people choose to use scarce resources to satisfy their wants is called _________

economics

What is the term used to describe the money taken out of a paycheck before the worker receives it?

withholding

What term refers to the alternative you give up when you make an economic choice?

trade-off

What term refers to using resources to their fullest capability to produce the maximum amount of goods and services?

efficiency

What term refers to the ongoing tension of not having enough resources to meet human wants?

scarcity

Which type of economic system does the information in the above table describe?

Which type of economic system does the information in the above table describe?

traditional

What is the most common type of economic system?

mixed economy

Which type of economic system does the information in the above table describe?

Which type of economic system does the information in the above table describe?

command

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

A state of disequilibrium happens when an imbalance exists between ________________ and _____________

quantity supplied and quantity demanded.

What does the government use to try to influence economic behavior?

tax incentives

How do investors commonly maximize returns and limit risks?

diversifying investments

What economic term refers to a percent of the total sales in a market?

market share

What economic term refers to benefits awarded to encourage people to act in certain ways?

incentives

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

What economic term refers to the maximum amount that sellers may charge for a good or service?

price ceiling

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

What economic term refers to the minimum that buyers must pay for a good or service?

price floor

What is the name of the payroll tax that is taken out to cover Medicare & Social Security?

FICA

product price x quantity sold = ____________

total revenue

What do both elasticity of demand & elasticity of supply measure?

responsiveness to price

What is the most common reason for supply to be inelastic?

the difficulty of changing the amount produced

fixed costs + variable costs = ___________

total cost

marginal revenue = _____________

price

The demand for a product is considered __________. if the quantity demanded changes significantly when price changes.

elastic

What economic term refers the state of disequilibrium resulting from quantity demanded being greater than quantity supplied?

shortage

Why do companies engage in competitive pricing?

to increase their market share

What state of disequilibrium can be caused by a price ceiling?

a shortage

What economic term refers the state of disequilibrium resulting from quantity supplied being greater than quantity demanded?

surplus

total revenue - total cost = _____________

profit

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

What acts as the incentive to motivate producers to increase supply?

profit

How does the market allocate goods or services?

price

ppc

demand curve



demand & supply curve

supply curve

List the Factors of Production

Land, Labor, Capital, Entrepreneurship

List the Factors of Demand

income


market size


consumer tastes


consumer expectations


substitutes


complements

List the Factors of Elasticity of Demand

substitutes


proportion of income


necessity vs. luxury

List the Factors of Supply

input costs


labor productivity


technology


government action


producer expectations


number of producers