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16 Cards in this Set
- Front
- Back
Needs
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goods or services that are required to live
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wants
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goods or services that are not necessary but that we desire to have
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Goods
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items or things. Examples: food, books, clothing, electronics, sports equiptment
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Services
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things we pay someone else to do for us. Examples: Doctors provide medical services; barbers cut our hair, landscapers cut our grass
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Scarcity
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goods and resources are scarce because there are not enough to satisfy everyone’s needs and wants
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Supply
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the quantity (amount) of goods that a supplier (a store or a business or a person) has available to sell
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Demand
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is how much people want a good; the amount of goods that the consumers want to buy.
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Consumers
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buyers of goods or services
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When supply is high and demand is low (Example: There are lots of a certain toy available but not many people want to buy it), prices ______.
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go down.
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When supply is low and demand is high (Ex.: There are only a few of a certain toy available and many more people want to buy it), prices _____.
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go up
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Who makes economic decisions in a command economy?
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the government
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Who makes economic decisions in a market economy?
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People decide- think of it as a FREE market in which people are free to make choices
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How are economic decisions made in a traditional economy?
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Decisions are made according to custom (however your grandfather did it, your father did it, and you'll do it).
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Competition is when more than one business or store sells the same product. Is competition good for consumers (people who buy the product)?
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Yes
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Why is competition good for consumers?
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- It gives consumers choices.
- It leads to lower prices. |
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Of the three economic systems we've studied, which does the U.S. have?
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market (also called free market or capitalism
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