Chapter 2 Flashcards

1
Q

Social science concerned with how people satisfy their demands for goods and services.

A

Economics

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2
Q

When there are not enough goods or services to meet the demand.

A

Scarcity

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3
Q

Method used by society to allocate goods and services among its people to cope with scarcity.

A

Economic system (Economy)

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4
Q

The government controls the production, allocation, and price of goods and services.

A

Command Economy

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5
Q

Suppliers and consumers control the production, allocation, and prices of goods and services.

A

Market Economy

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6
Q

An economic system that blends elements of command and market economy.

A

Mixed Economy

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7
Q

A transaction in which both suppliers and consumers benefit.

A

Voluntary exchange

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8
Q

Cash and goods a business owns is called…

A

Capital

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9
Q

A free enterprise system is also referred to as…

A

Capitalism

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10
Q

Quantity of goods and services a business is willing to sell at a specific price and a specific time.

A

Supply

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11
Q

The quantity of goods and services consumers are willing to buy at a specific price and a specific time.

A

Demand

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12
Q

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.

A

Supply Curve

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13
Q

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.

A

Demand Curve

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14
Q

Graph that includes both supply curve and demand curve.

A

Supply and Demand Curve

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15
Q

where the supply curve and the demand curve intersect.

A

Equilibrium point

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16
Q

An incentive that encourages entrepreneurs to take business risks in the hope of making a profit.

A

Profit motive

17
Q

Selling Price - Expense = Profit (or Loss)

(Profit/Selling Price) x 100 = Profit %

A

Economics of one unit

18
Q

a business that operates solely to serve the good of society.

A

Nonprofit organization