Presentation Transcript

1. The Fifth Quiz

   Review

2. What is market price?

3. What is market price?

   The price at which goods and services may actually be bought or sold, also called the equilibrium price.

4. What’s Gross Domestic Product?

5. What’s Gross Domestic Product?

   The total of all goods and services produced in the US by businesses, consumers and the government.

6. What’s Freedom of Enterprise?

7. What’s Freedom of Enterprise?

   People can begin any legal business and conduct it as they see fit…may be licensees or other supervision and regulations.

8. What is Capitalism?

9. What is Capitalism?

   The means of production are privately owned. The fundamental questions of what, how and who are answered by the market, rather than the government.

10. What is a recession?

11. What is a recession?

    Two quarters in a row of declining GDP growth. A depression is a long recession.

12. What is Supply?

13. What is Supply?

    The total amount of goods and services offered for sale at a particular price.

14. What is the law of Supply?

15. What is the law of Supply?

    The quantity of a good or service supplied varies directly with its price. As the price of a good or service goes up, sellers are willing to supply it. As the price goes down, they become less willing.

16. What is inflation?

17. What is inflation?

    A general rise in prices.

18. What is economic security?

19. What is economic security?

    The idea that our future is provided for…we want to know that we are financially secure for the future.

20. What is a market?

21. What is a market?

    Any place or circumstance where goods and services are bought or sold.

22. What is barter?

23. What is barter?

    Exchanging one good or service for another good or service

24. What is the price directed market system?

25. What is the price directed market system?

    Economic decisions are made by the nation’s business enterprises and by those who buy from them…the government can’t make these decisions and have the economy as efficient as it currently is.

26. How does supply and demand work together to come up with a market price?

27. How does supply and demand work together to come up with a market price?

    As prices increase, the number of items offered for sale (supply) increases, but the quantity that are wiling to buy (demand) decrease, so price has to come down to meet demand – where they meet is at the equilibrium price (market price)

28. What is perfect competition?

29. What is perfect competition?

    Many buyers and sellers act independently (no single buyer is large enough to influence the market place Competing product are practically identical so that buyers and sellers of a product are not affected by variations in quality or design

30. What is perfect competition?

    Many buyers and sellers act independently (no single buyer is large enough to influence the market place Competing product are practically identical so that buyers and sellers of a product are not affected by variations in quality or design
31. All buyers and sellers have knowledge of prices being quoted all over the market Buyers & sellers can enter & leave the market at will. That is – buyers are free to buy or not to buy, sellers are free to sell or not to sell.
32. All buyers and sellers have knowledge of prices being quoted all over the market Buyers & sellers can enter & leave the market at will. That is – buyers are free to buy or not to buy, sellers are free to sell or not to sell.

33. What would cause a shift in the supply curve to the left?

34. What would cause a shift in the supply curve to the left?

    Using oil for an example, if there were a war in the middle east, or a hurricane in the gulf that would affect the amount of oil supplied, the entire curve would shift the left, creating a rise in prices, irrespective of demand

35. What is the law of demand?

36. What is the law of demand?

    As the price of something goes down, more people are able and willing to pay for it.

37. What is diminishing marginal utility?

38. What is diminishing marginal utility?

    The degree of satisfaction or usefulness a consumer gets from each additional purchase of a product or service declines over time and purchases.

39. What’s opportunity cost?

40. What’s opportunity cost?

    The trade-off of the value of one good or service for the value of another…parking lot or play ground

41. What is token money

42. What is token money

    Coins, or any other form of zinc or metal slug that the government uses as a form of legal tender.

43. What’s Fiat Money?

44. What’s Fiat Money?

    Includes token money, but is any money that has value, just because the government says so.

45. What’s a trade off?

46. What’s a trade off?

    Giving up one thing for another… a piece of cheese cake for a navel orange.

47. What is the profit motive?

48. What is the profit motive?

    Why we have businesses… without it, people would not risk financial loss to create a business.

49. The End

    Yep, this covers most of it for sure, and is a good prep for the pending Unit Test!