question
Scarcity
answer
No matter how wealthy a society is, everything is limited
question
trade-offs
answer
When something is gained, something else must be lost
question
Rationing
answer
Comparing the benefits of every action with it's opportunity cost
question
Opportunity cost
answer
Exactly what you lose from a trade-off
question
Market
answer
All of the buyers and sellers of a particular good or service
question
Law of Demand
answer
If the price is low, demand is high, if the price is high, demand is low
question
Normal Goods
answer
A good in which when income is high, demand is high, but when income is low, demand is low
question
Inferior goods
answer
A good which the quantity demand falls as income rises
question
Substitutes
answer
When a decline in the price of one good causes a quantity reduction in another
question
Expectations
answer
when something is coming soon the buyers will be expecting it
question
Inputs
answer
Things that suppliers have to purchase to supply a product
question
Equilibrium
answer
The point at which the market will settle, when supply and demand are level
question
Microeconomics
answer
The study of economics for a particular market or individual behavior
question
Macroeconomics
answer
The overall performance of a national economy
question
Law of Supply
answer
The higher the price, the greater quantity the producer will want to produce
question
Competitive market
answer
A large number of producers compete to satisfy the wants and needs of a large number of consumers
question
Elasticity
answer
How much a quantity demand changes in relation to a change in price
question
Comparative Advantage
answer
The ability of an individual or group to carry out a particular economic activity (such as making a specific product) more efficiently than another activity.
question
Monopoly
answer
When there is only one supplier for a particular market
question
Oligopoly
answer
A market with very few sellers
question
Entrepreneurs
answer
Individuals who take the risk of attempting to create new products or services, establish new markets, or develop new methods of production
question
Market failure
answer
When competitive markets fail to produce socially desirable outcomes
question
Demand
answer
the quantity of a good or service that buyers are willing and able to buy at all possible prices during a period of time
question
Money
answer
anything widely accepted as a payment for final good or services
question
Unlimited liability
answer
Ones personal assets can be sized to pay businesses debt
question
Double Taxation
answer
happens to a corporation when the company is on its profits and then the shareholders are taxed again on the dividers they earn from the company
Order an Essay Now & Get These Features For Free:
Turnitin Report
Formatting
Title Page
Citation
Outline