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Introduction to Economics . Unit Test Review . What is a market? . What is a market? . Any place where you, or I, can exchange goods or services for money. What does Ceteris Paribus mean? . What does Ceteris Paribus mean? . All things being equal. .
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Introduction to Economics Unit Test Review
What is a market? Any place where you, or I, can exchange goods or services for money.
What does Ceteris Paribus mean? All things being equal.
What do prices do for the market? They help business firms to constantly find ways to increase their profits, and it provides incentives to find new ways to improve the ways in which they combine the means of production.
What are consumers? People who buy goods and services for personal use.
What is a shortage? A temporary man-made situation, Tops running out of food because of a big snow storm.
What is profit motive? The willingness of entrepreneurs to risk financial loss by organizing & launching a business enterprise
What are the factors of production? Land, labor and capital. There’s more to it than that, you know, and you should know it when the test comes.
What are the fundamental questions of economics? What, how and who…there’s more to it than that, of course, and of course, you should know it by test time.
What is Competition? It drives the market place, gives us better goods and lower prices. Important for all economic systems.
What is Gross Domestic Product? A total off all goods and services produced by American businesses & consumers.
What does specialization do for our economy? It makes it more efficient. Instead of having to be a jack of all trades (and a master of none), we do well on only a few tasks.
What is elastic demand? Demand that has give in it, so to speak. Diet coke, you don’t have to have it, so a price spike, means that you don’t have to buy it. Like Gas, which you do have to buy.
What is inelastic demand? Demand for products we must have. Gasoline is inelastic, we have to have it to make our cars go…demand for food is inelastic, but some foods, like tomatoes, it’s elastic. Make sense?
What is barter, what’s its weakness? Trading goods & services for other goods or services. Weaknesses includes, but not limited to, double coincidence of want – you have to meet someone who has what you want and wants what you have.
Why do economics use economic models. Because they help them make clearer predictions about the economy, and helps to clarify economic issues (pictures goods, words not so good)
Can you label a supply and demand graph? Good. I’m glad.
What’s a depression? A prolonged recession (two quarters in a row of declining GDP growth).
What is supply? The amount of goods and services available in an economy.
Opportunity Cost is? The trade-off of the value of one good or service for the value of another…a new mall but green space is eliminated.
What’s a trade-off? When one thing is given up to obtain something else. Time playing golf vs. time painting the side of your house.
What must be present for perfect competition? There are four of them, they’re important, and think of eggs. Regular old Grade A large eggs.
Microeconomics? The study of the effects of economic forces on individual parts of the economy, like firms and households.
Compare voting & dollars in the market system; Buying a good or service from the store is like voting…you’re telling the business to keep doing it, the more people who buy a (or vote for) a product, the more likely they are going to keep producing it.
What are the two worlds of economics? The world that is, and the world that ought to be.
