Civics - Supply & Demand Flashcards
A thing to motivate or encourage
Incentive
How do ____ and ____ determine ____ in a market economy?
– Supply
- Demand
- Prices
The amount of a good or service that consumers are willing and able to buy at different prices during a given time period
Demand
A demand in the amount of a good or service that consumers are willing and able to ____ at different prices during a given time period
Buy
Higher prices for a good or service provide incentives for BUYERS to purchase ____ of that good or service
Less
____ prices for a good or service provide incentives for BUYERS to purchase less of that good or service
Higher
Lower prices for a good or service provide incentives for BUYERS to purchase ____ of that good or service
More
____ prices for a good or service provide incentives for BUYERS to purchase more of that good or service
Lower
What is the law of demand?
Consumers will buy more of a good or service at lower prices
Consumers will buy less at higher prices
The law of demand says consumers will buy more or a good or service at ___ prices
Lower
The law of demand says consumers will buy ____ or a good or service at lower prices
More
The law of demand says consumers will buy less or a good or service at ___ prices
Higher
The law of demand says consumers will buy ____ or a good or service at higher prices
Less
What is the amount of a good or service that producers are willing and able to offer for sale at each possible price during a given period of time?
Supply
Supply is the amount of a good or service that producers are willing and able to offer for ____ at each possible price during a given period of time?
Sale
____ prices for a good or service provide incentives for PRODUCERS to make or more more of that good or service
Higher
____ prices for a good or service provide incentives for PRODUCERS to make or sell less of that good or service
Lower
The law of supply states what 2 things?
- Producers will produce more when they can sell at a higher price
- Producers will produce less when they can sell at a lower price
The law of supply states the produces will produce more when they can sell at a ____ price.
Higher
The law of supply states the produces will produce less when they can sell at a ____ price.
Lower
Price is determined by the interaction of ____ and ____
Supply
Demand
Price is the amount of ____ exchanged for a good or servcie
money
Neither ____ or ____ ALONE can set the price of something
Supply
Demand
The equilibirum price is the point where ____ and ____ meet
-Supply
- Demand
At the equilibrium price everyone who wants to ____ at that price can sell
Sell
At the equilibrium price everyone who wants to ____ at that price can buy
Buy
Both ____ and ____ respond to price changes
Buyers
Sellers
When ____ change:
- Buyers change the quantity they are willing and able to ___
- Sellers change the quantity they are willing and able to ____ ____ ____
Prices
Buy
Bring to Market
A form of business organization with one owner who takes all the risks and the profits
Proprietorship
A proprietorship is a form of business organization with ____ owner who takes ___ the ___ and all the ____
- One
- All
- Risks
- Profits
The most common type of business
Proprietorship
A form of business organization with two or more owners. They share the risks and profits.
Partnership
A partnership is a form of business organization with ____ or ____ owners. They ____ the risks and profits.
- Two
- More
- Share
A form of business organization that is authorized by law to act as a legal entity regardless of the number of owners.Owners share the profits. Owner liability is limited to the amount of investment
Corporation
There are ____ basic ways that businesses organize to earn ____
- Three
- Profits
A person who takes risks to produce and sell goods and services in search of profits
Entrepreneur
An entrepreneur may establish a ____ according to any of the ___ types of organizational structures.
- Business
- Three
An entrepreneur fosters ____ progress and economic growth (They are good for our economy)
- Technological
____ play an important role in all ____ types of business organizations
- Entrepreneurs
- three
An entrepreneur is a person who takes ____ to produce and ___ goods and services in search of ____.
- Risks
- Sell
- Profit
Anything produced in an economy that is used to produce other goods and servcies
Capital
Money coming in
Revenue
The ____ flow diagram is a way of visualizing and categorizing activity within an economy
Circular
Individuals (households) do 3 things
- Own the ____ (Skills/knowledge) used in production
- sell the ____
- Use their ___ to purchase products
- Resources
- Resources
- Income
Governments use the ____ revenue from households and business to provide public goods and services
Tax
What are examples of public goods and services provided by the Government based on the taxes the Government collects?
- Interstate
- highways
- public schools
- national defense
Business (Producers) do the following
- Buy ____
- Make ____ that are sold to individuals other than businesses and the government
- use the ____ to buy more resources
- Resources
- Products
- Profits
____, ____ and ___ flow in one direction (opposite to money).
- Good
- Services
- Resources
____ flows in the direction opposite to goods services and resources
Money
Resources, goods and services and money flow ____ among household, businesses and markets in the US economy
Continuously
Banks and other places that act as intermediaries between savers and borrowers
Private Financial Institutions (PFI)
The amount of money or a valuable item that is paid into or left in a bank or other institution
Deposit
Payment for the use of capital (money)
Interest
Private Financial Institutions include ____ and ____
- Banks
- Credit Unions
Private Financial Institutions receive ____ and make ____
- Deposits
- Loans
Private Financial Institutions help provide financial capital (____) to people/businesses to start or grow ____
- Money
- Businesses
Private Financial Institutions help facilitate an exchange of ____ between ____ and ____.
- Money
- Savers
- Borrowers
