Basics of Economics

The basic question of economics can be broken down farther. Which is NOT one of the 3 basic "sub" Economic Questions?

Buyers want more of a product than producers are willing to produce...

Inflation results in...

Choosing to buy or spend time on one thing and NOT buying or doing something else. Because time and money is limited.

The price at which buyers & producers agree, at an agreed upon quantity. (Where the supply curve & demand curve meet).

Income available to spend on wants (after needs are met).

All products are created from

Producers produce more of a product than people want...

Which is NOT a factor of production

The value of what you gave up in order to to buy or do something else.

An increase in the supply of money causes...

Anything that is not food, shelter, and clothing is considered a want.

What is NOT a "need"?

Which is NOT a requirement of a true Market Economy?

Illegal buying and selling.

When the amount of products produced is equal to the amount of products people buy.

The basic question of economics is, "How do I use my limited resources to obtain limited products that I need or want?"

"Price floors" (minimum prices), mandated by the government, cause...

Satisfaction (in economic terms)

Natural Resources ("Land"), Human Resources ("Labor"), Capital Goods ("Capital"), Entrepreneurship

Inflation is...

The Basic Problem of Economics

Income available to spend on needs and wants (after taxes taken out).

As consumption increases, the amount of satisfaction gained by each new unit consumed declines.

Income available before taxes taken out.

Price Controls...

Which is NOT a factor of production

"Price ceilings" (maximum prices), mandated by the government, cause...

How many factors of production are there?