Supply and Demand + Basic Economics

Which factor of production is shown here?

Demand is the amount of goods consumers are willing to buy, even if they do not have the means to purchase the goods.

Farmers, cashiers, truck drivers, lawyers, accountants, graphic designers, and managers are examples of:

The amount of goods producers are willing and able to sell is known as:

The law of supply states that a higher price will result in a lower quantity being produced.

When there is more supply from producers than there is demand from consumers it is known as:

That total value of all goods and services produced within a year is known as:

As shown on a demand curve, price and quantity demanded have an INVERSE relationship because:

A demand curve slopes downward to the right (because as price decreases, quantity demanded increases)

If there is more supply than there is demand from consumers it is known as ________. The price is too high.

People's wants are unlimited and resources are limited. These facts mean that which of the following is always present?

What type of economic system?Individuals are encouraged to develop new ideas and businesses.

Tools, buildings, machinery, equiment, and vehicles are examples of:

If the price of a good increases, demand will __________________.

What type of economic system?Land, tools, and factories are privately owned

Which is NOT one of the 3 fundamental questions to ask when establishing an economic system?

In a capitalist economy, individuals and businesses determine what goods to produce, how much, and and at what price.

In a command economy,the factors of production are owned by the government.

What are the factors of production?

Equilibrium happens when demand is equal to supply, resulting in neither a shortage or surplus.

This is the highest phase of the business cycle. After this, GDP begins to decrease.

GDP Per Capita is a useful way to measure a country's standard of living (quality of life).