Chapter 6: Decisions in a Market Economy

In the business cycle chart, the two axes (points of reference used to make the chart)

The supply and demand concept applies to

A rise in GDP usually indicates the standard of living is decreasing because people are wasting money.

What are two things that lead to the normal trend of an economy?

If fixed expenses are $400,000 a shirt sells for $35 and costs$2, what is the break even amount?

A depression is when

Economics is the

Economic indicators

Some variables that affect the business cycle are

In a _____ the government decides what goods/services to produce.

The condition in which there are too few resources for people to consume as much as they want

In a _____, individuals and private businesses decide what goods/services to produce.

Business cycle is the

The break even point is really talking about the

If there is a lot of something available

What is it called when the governmenet can take your property?

The law of demand states as the price of goods/services increase, customers will

Opportunity cost is talking about the

The United States is

In a democracy, central planning forces (the government) may prioritize

The official dates for business cycles are determined by the

A market economy is the same as a capitalistic economy.

The main problem in a command economy is

In a recession businesses usually

Before starting a business/product you have to think how much are the

The law of supply states that as the price of a good rises a BUSINESS

The equilibrium price can shift right or left (increase or decrease)

What is bad about capitalism?

The equilibrium price is when the quantity of the product or service supplied

In an expansion period

When the government takes peoples propery, people usually get more than they deserve for their property to compensate.