WJHS EPF test 1

 An economic system in which habit and custom dictate most economic and social behavior

the gradual wearing out of capital goods

a production cost that changes when output changes

a production cost that does not change as total business output changes

Cause: The government wants to allocate scarce goods and services without the help of a price system. Effect:_______

Cause A reasonably competitive market is experiencing alternating,consecutively smaller, surpluses and shortages. Effect

illustrating that consumers demand differents amounts at every possible price, causing the demand curve to shift

the additional output produced when one additional unit of input is added

Cause: A market is at equilibrium, but the product falls out of style before producers can reduce production. Effect:__

a movement along the demand curve showing that a different quantity is purchased in response to a change in price.

a principle illustrating that a given change in price causes a relatively large changes in the quantity demanded.

 The idea that people rule the market

the field of economics that deals with behavior and decision making by individuals and firms.

Cause  decide that farmers should receive a higher price for milk so a price floor for these products is established. 

associated with Stage II of production

An economic system in which a central authority makes economic decisions

_____the desire, ability, and willingness to buy a product.

A society organized way of providing for its peoples wants and needs

a graphical representation of the theory of production

The right and privilege to control ones own possession

A system in which the factors production are owned by private citizens

when marginal revenue equals marginal cost

Cause: The government tries to keep prices down by legislating price ceilings. Effect:________

a statement that more will be demanded at lower prices and less at higher prices.

the sum of variable and fixed costs

a graph that shows the quantity demanded at all possible prices in the market at a given price.

The driving force that encourage people to improve their material well-being

a type of decision making that compares the additional costs with the additional benefits of an action.

a listing in a table that shows the quantity demanded at all possible prices and less at higher prices.

The act of buyers and sellers freely conducting business in market