Civics and Economics Review

STUDY
PLAY
Elastic
quantity supply changes a lot compared to price
Price Ceiling
Government sets a max. price for a good or service
Business Owners
Profit is the primary goal for ________.
Surplus
Quantity supplied is greater than quantity demanded
Price
This has the most influence on quantity supplied
Price floor
Government sets a minimum price for a good
Neutral
When prices favor neither producer or consumer
Upward
The supply curve will only go this way
Law of supply
Dictates that sellers will normally offer more for sale at higher prices and less at lower prices
Equilibrium
Point at which supply and demand are balanced
Inelastic
Quantity supply changes little compared to price
Production
Efficiency is more output in same amount of time
Subsidy
Government payment to an individual or business for certain actions
Producers
They offer different quantities of a product depending on the price that buyers are willing to pay
Shortage
Quantity demand is higher than quantity supply
Profit
It is the primary goal for business owners in our economy
Quantity
As price rises, ______ supplied rises, and _____ demanded falls
Technology
Refers to methods or processes used to make goods
Supply curve
this moves when market supply goes up or down
Satisfaction
Diminishing marginal utility states that our additional _________ tends to go down as we consume more and more units
Law of Demand
This states that the quantity demanded and price will always move in opposite directions
Demand Inelasticity
Price change % > demand change %
Demand Curve
the line that connects these points on a demand schedule
Demand Elasticity
Price change % < demand change %
Utility
the pleasure, usefulness, or satisfaction that products give us
Substitutes
Competing products are called _____
Demand Schedule
Table that lists the various quantities of a product or service that someone is willing to buy over a range of possible prices
Compliments
_________ are products that are used together
Prices
These are shown on a vertical axis in the demand schedule
Market Demand
The total demand of all consumers for a product or service
Want, be willing, have the resources
Name the THREE things necessary for a purchase to be made:
Credit Unions
Offer higher interest rates on savings accounts and low rates in loans. You also must be a member
Bankruptcy
People do this when their debts are so large that they can't pay them back
Principle
This is what you actually borrowed on your loan
Disposable Income
Money used to satisfy your needs
APR
Your interest paid expressed as a percentage
Interest
The amount you pay to borrow the money
Unsecured Loans
A person may get this based solely on their reputation
Credit
Borrowing money to pay for something now while promising to repay at a later time
Credit Limit
the most a person can buy with the promise of payment at a later time
Discretionary Income
Money used to satisfy your wants
Consumer
the buyer of a product
Finance Charges
Your interest paid expressed as dollars
Credit Score
the higher this is, the lower the interest rate. which saves you money
Credit Cards
You use these to make purchases without cash - like a loan
Economics
the study of how we make decisions in a world where resources are limited
Goods
are tangible products you can touch
Needs
are things we need for survival
Wants
are things we would like to have
gross domestic product
the value of all good and services produced in a country in a single year
Expanding
if the new GDP is higher than the previous one, the economy is __________
Rational
reasonable choices with the limited resources that we have are said to be ____________
service
work performed for someone else
natural resources
all the gifts of nature that make production possible
Entrepreneurs
are individuals who start new businesses; innovators
Marginal Benefit
an additional benefit associated with an action
trade-off
the thing you choose to do or the action you take
opportunity cost
the thing you gave up
fixed cost
does not change with production
Profit
any money left over after all costs of production have been paid is known as _________
Competition
the struggle between buyers and sellers to get the best products at the lowest prices
Consequences
both consumer and entrepreneur have to deal with the __________ of their choices
Capitalism
an economic system in which private citizens own and use the factors of production to seek a profit
Specialization
when people, businesses, and countries concentrate on the goods or services they can produce better than anyone else
Division of labor
the breaking down of a job into separate, smaller tasks performed by different workers
Foreign sector
includes all the countries in the world
taxation
government receives the majority of its revenue from ________
Adam Smith
Wealth of Nations, was written in 1776 by _______
Free enterprise
an economy in which competition is allowed to flourish with a minimum of government interference
Productivity
a measure of the amount of output produced by a given amount of imputes in a specific period of time
Inflation
when prices grow faster than wages
Market
a location or other situation that allows buyers and sellers to exchange certain economic products
Standard of living
the quality of ones life based on the possession of necessities and luxuries that make life easier