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Economics
35 cards·by vlkinne18
What is scarcity?
When limited resources are combines with unlimited needs and wants.
In a market economy, - decide what to produce.
Individuals.
Command economies are also called -
Communist countries.
Suppliers are willing to produce (more or less) of a product or service at a higher price.
Less.
Individuals are willing to buy (more or less) of a product or service at a lower price.
More.
When the price is higher than equilibrium, - will drop.
Price.
When the price is lower than equilibrium, - will drop.
Quantity.
What do companies have to do during a surplus?
Lower the price.
What do companies have to do during a shortage?
Raise the price.
Example of Pure Competition.
T-shirt company and grocery store.
Example of Oligopoly.
Jean and Car companies.
Example of Monopoly.
Tv, Phone, and Electric company.
Are Monopolies illegal?
Yes.
What do monopolies have to do in order to raise prices?
Get permission from government.
Business costs can be classified as either a - cost or a - cost.
Fixed and Variable.
Fixed costs are also called - costs.
Sunk.
- Costs are the same each month.
Fixed.
Three examples of fixed costs.
Rent, Insurance, and Loans.
- Costs change from month to month.
Variable.
Three examples of variable costs.
Supplies, Utilities, and commissions.
If our store stayed open an extra hour each day, we could make an additional $250 in sales. This
is called our -
Marginal benefit.
We would spend $175 in electricity and overtime pay during this extra hour. This is called our -
Marginal cost.
What are your opportunity costs of going to school?
Sleep, Watching Netflix, and Playing games.
Three ways the government has an effect on what is produced.
Purchases, Taxes, and Subsides.
By purchasing, the government - consumption of certain products.
Increases.
What is the retail sales tax rate in Virginia?
5%
By taxing, the government - consumption of certain products.
Decreases.
Two situations when government commonly offers subsides.
1. Encourage people to produce particular products. 2. Companies that locate business in
certain inner city ares.
By paying subsides, the government - consumption of certain products.
Increases.
Four roles of the government.
Regulator, Provider of the Public Good, Provider of Social Programs, and Redistributor.
What does USDA stand for and what does it do?
U.S. Department of Agriculture. They oversee the american farming industry.
What is the OSHA? What do they do?
Occupation Safety and Health Administration. Protects american workers.
Three examples of the government providing a public good or service.
1. Schools 2. Military 3. Vaccinations against communicable diseases.
Who does Social Security help?
Older Americans and american workers.
Who does Welfare help?
Poor people.