Intro to Economics Review

Situation in which demand exceeds supply.

The limited nature of society's resources is known as

The most desirable alternative given up as the result of a decision

This law states as price increases, so does production

When a business cycle is in contraction for two quarters, there is a(n)

People swap a more expensive item for a less expensive one describes the

In which Economic System are locals engaging in small scale trade to satisfy their conventional needs and wants?

The three basic economic questions are: What to Produce, How to Produce and ...

The principle that people may decide what, when, and how they want to buy and sell

Microeconomics involves...

Who answers all the economic questions in a Free Market Economy?

The point where supply and demand curves meet is called

Demand that does not react to change in price is

Situation in which supply exceeds demand.

Who answers all the economic questions in a Command Economy?

 The cost added by producing one additional unit of a product or service.      

The three factors of production are:

Which law says: When an item’s price is lower, people will purchase more of it

If a sale caused you to wait before buying a product, which determinant would that be?

The price of McDonald's burgers doubled while other places are still the same, why would people buy less McDonalds?

As people consume an item, they get less additional satisfaction from each unit they consume describes the

A maximum price at which a product can be sold is a

Specialization is when labor is divided amongst laborers in order to achieve greater efficiency

Demand that reacts to change in price

 Which describes human capital?

What is the "Invisible Hand"?

Economics is the study of

A minimum price at which a product can be sold is a

Macroeconomics involves....

If a you suddenly got a huge raise and began purchasing more as a result, that would be which determinant?