Supply and Demand + Basic Economics

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

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

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

What are the factors of production?

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

The phase of the business cycle in a declining economy. Two or more quarters of decline equals a recession.

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

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

Which factor of production is shown here?

The business cycle when GDP grows for at least two quarters in a row. Also called a recovery.

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

Empty store shelves may sometimes indicate a shortage of goods. What does this say about the price of these goods?

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

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

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

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

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

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

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

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

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

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

This phase of the business cycle is the lowest point. Ends a period of decline. and beginning of growth.

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

The PACED decision process is: identify problem, list criteria, identify alternatives, evaluate alternatives, & decide

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

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

T-shirts were on sale at the mall so more people purchased them. This is an example of: