Economics

Question 1

circular flow

Answer 1

the interaction btw those that make economic decisions (households/ businesses) and those that provide goods and services

Question 2

supply

Answer 2

what producers make

Question 3

demand

Answer 3

what consumers ask/want

Question 4

law of supply

Answer 4

price increase - quantity increases
producers benefit from high price

Question 5

law of demand

Answer 5

price increase - quantity decreases
consumers harmed by high opportunity cost

Question 6

cost benefit analysis

Answer 6

the gains and loses of an economic decision

Question 7

factor market

Answer 7

market where factors of production are bought/sold

Question 8

trade cap

Answer 8

limits the amount of imported/exported gods

Question 9

Consumer Price Index (CPI)

Answer 9

measures country’s economy based on how much consumers spend

Question 10

laissez faire

Answer 10

Adam Smith’s invisible hand where gov does not interfere with economy

Question 11

factors of production

Answer 11

land, labor, entrepreneur, capital

Question 12

absolute advantage

Answer 12

who can produce more of a good service with the same amount of resources

Question 13

comparative advantage

Answer 13

who can produce a good or service at a lower opportunity cost than others

Question 14

surplus

Answer 14

having too much of a good`

Question 15

perceived value

Answer 15

how desirable a product is to a consumer

Question 16

market economy

Answer 16

privately owned businesses

Question 17

traditional economy

Answer 17

goods and services made by each family and they can exchange to gain other goods

Question 18

mixed economy

Answer 18

privately owned businesses operate under gov regulation

Question 19

command economy

Answer 19

gov controls economy

Question 20

trade deficit

Answer 20

buying more than selling

Question 21

price ceiling

Answer 21

max price for good regulated by gov

Question 22

Supply Side Economics/ Reaganomics

Answer 22

gov intervention should help producers supply more

Question 23

Disequilibrium

Answer 23

having too much of a supply or having too much demand

Question 24

Gross Domestic Product (GDP)

Answer 24

everything a country makes in a year

Question 25

economies of scale

Answer 25

price fall due to increase in production

Question 26

deficit

Answer 26

not having enough of supply

Question 27

specialization/division of labor

Answer 27

companies specialize in making the best product to make the most money and get other goods through trade

Question 28

Keynesian economics

Question 29

dividend

Answer 29

percentage of profit

Question 30

share

Answer 30

small percentage of the company

Question 31

means of production

Answer 31

non-human resources used to produce (tools)

Question 32

labor force

Answer 32

everyone that works, wants to work

Question 33

subsidies

Answer 33

gov pays industry to reduce costs

Question 34

stock market

Answer 34

buy and sell company shares

Question 35

free trade

Answer 35

country can trade with other countries without restrictions