Chapter 2 Flashcards
Social science concerned with how people satisfy their demands for goods and services.
Economics
When there are not enough goods or services to meet the demand.
Scarcity
Method used by society to allocate goods and services among its people to cope with scarcity.
Economic system (Economy)
The government controls the production, allocation, and price of goods and services.
Command Economy
Suppliers and consumers control the production, allocation, and prices of goods and services.
Market Economy
An economic system that blends elements of command and market economy.
Mixed Economy
A transaction in which both suppliers and consumers benefit.
Voluntary exchange
Cash and goods a business owns is called…
Capital
A free enterprise system is also referred to as…
Capitalism
Quantity of goods and services a business is willing to sell at a specific price and a specific time.
Supply
The quantity of goods and services consumers are willing to buy at a specific price and a specific time.
Demand
What is a graph that shows the quantity of a product or service a supplier is willing to sell across a range of prices over a specified period of time.
Supply Curve
A graph that shows the quantity of a product or service consumers are willing to buy across a range of prices over a specified period of time.
Demand Curve
Graph that includes both supply curve and demand curve.
Supply and Demand Curve
where the supply curve and the demand curve intersect.
Equilibrium point