Commerce Flashcards
What is commerce?
Commerce is the activity of buying and selling, especially on a large scale.
True or False: Needs are essential for survival.
True
Fill in the blank: Wants are _____ that are not essential for survival.
desires
What does scarcity refer to in economics?
Scarcity refers to the limited availability of resources to meet unlimited wants.
What are goods?
Goods are tangible products that can be touched and consumed.
What are services?
Services are intangible activities or benefits that are offered to consumers.
Multiple Choice: Which of the following is an example of a good? A) Haircut B) Laptop C) Education
B) Laptop
Multiple Choice: Which of the following best describes a service? A) A car B) A concert C) A book
B) A concert
What is the basic economic problem?
The basic economic problem is the conflict between limited resources and unlimited wants.
True or False: All wants are considered needs.
False
What is the relationship between scarcity and choice?
Scarcity forces individuals and societies to make choices about how to allocate resources.
Fill in the blank: The study of how people manage resources is known as _____ .
economics
What is a market?
A market is a place where buyers and sellers come together to exchange goods and services.
What role do prices play in a market economy?
Prices help allocate resources by signaling supply and demand.
Multiple Choice: Which of the following is NOT a factor of production? A) Land B) Labor C) Money
C) Money
What is demand?
Demand is the quantity of a product that consumers are willing and able to purchase at various prices.
What is supply?
Supply is the quantity of a product that producers are willing and able to sell at various prices.
True or False: A surplus occurs when supply exceeds demand.
True
What is the law of demand?
The law of demand states that, all else being equal, as the price of a good decreases, the quantity demanded increases.
What is the law of supply?
The law of supply states that, all else being equal, as the price of a good increases, the quantity supplied increases.
What is equilibrium price?
Equilibrium price is the price at which the quantity demanded equals the quantity supplied.
True or False: Goods can be classified as either durable or non-durable.
True
What is a consumer?
A consumer is an individual who purchases goods and services for personal use.
What is a producer?
A producer is an individual or business that creates goods and services.
Fill in the blank: The economic system where resources are owned and controlled by the government is called _____ .
socialism
What is capitalism?
Capitalism is an economic system where private individuals own and control property and businesses.
