Business Essentials 2.00 Economic Concepts Flashcards

A comprehensive set of flashcards covering basic economic vocabulary and principles from the Bus Ess 2.00 curriculum including supply, demand, market conditions, and resources.

Law of Supply and Demand

Economic principle which states that the supply of a good or service will increase when demand is great and decrease when demand is low.

Seller's market

A market condition characterized by higher prices, typically occurring when demand is high and supply is low.

Economic resources

The human and natural resources and capital goods used to produce goods and services.

Surplus

Also known as excess supply, this is a market condition where the supply is greater than the demand, resulting in an abundance of remaining products.

Human resources

The economic resource consisting of people who work to produce goods or services.

Elastic demand

A form of demand for products in which changes in price correspond to changes in demand; more likely when the good is a luxury.

Capital goods

Manufactured or constructed items, such as a conveyor belt, that are used in the production of goods and services.

Trade-off

Giving up all or a part of one thing in order to get something else.

Economic service

Productive acts that are useful, scarce, and transferable and which satisfy economic wants.

Inelastic demand

A form of demand in which changes in price do not affect demand; it is unaffected by price changes.

Noneconomic want

Desires for things that can be obtained without spending money, such as rain for crops.

Economic want

A desire for something that can only be satisfied by spending money to consume a good, service, or leisure activity.

Economic votes

The choices customers make every time they buy a product, signaling their preferences to the market.

Law of supply

Economic principle which states that the quantity of a good or service that will be offered for sale varies in direct relation to its price.

Prices

Used in the economy to determine what goods are to be produced and in what quantities; the amount of money paid for a good, service, or resource.

Consumer goods and services

Items purchased by the ultimate consumer for personal use, such as a laptop purchased for doing homework.

Exchange

The economic process of trading one good or service for another, often involving consumers, producers, and resource owners using money.

Production

The economic process or activity of producing goods and services.

Natural resources

Items found in nature that are used to produce goods and services.

Industrial goods and services

Products purchased by producers for resale, to make other goods and services, and/or to use in business operations.

Factors of production

The productive resources consisting of human and natural resources and capital goods.

Excess demand

The situation that exists when demand is greater than supply, often leading to a shortage.

Economic goods

Physical objects that are useful, scarce, and transferable and which satisfy economic wants.

Consumption

The economic process or activity of using goods and services.

Distribution

The economic process or activity by which income is divided among resource owners and producers.

Elasticity

An indication of how changes in price will affect changes in the amounts demanded and supplied.

Scarcity

A condition resulting from the gap between limited resources and unlimited wants for goods and services.

Supply

The quantity of a good or service that sellers are able and willing to offer for sale at a specified price in a given time period.

Want

A desire for something that is not required.

Economics

The study of how to meet unlimited, competing wants with limited resources.

Equilibrium

The point at which the quantity supplied is equal to the quantity demanded.

Law of demand

Economic principle which states that the quantity of a good or service that people will buy varies inversely with the price of the good or service.

Need

Something required or essential that is lacking.

Opportunity cost

The benefit that is lost when you decide to use scarce resources for one purpose rather than for another.

Demand

The quantity of a good or service that buyers are ready to buy at a given price at a particular time.