economics quarterly review

1. Goods Private v.s Public Goods

• Define:

  • Private Goods: a good that is bought for your own consumption ____________________________________________________________

  • Public Goods: a service that everyone can use _____________________________________________________________

• Example Identification: Label each example as a private or public good.

  • a. National defense: public good __________________

  • b. A personal car: private good __________________

  • c. Clean air: public good __________________

2. Opportunity Cost and Trade-Off

• Define Opportunity Cost: the value of what is given up when making a decision ______________________________________________________

• Example:

  • Suppose you choose to study for an exam instead of going out with friends. What is the opportunity cost of this choice?

The opportunity cost is the chance to go out with your friends ______________________________________________________________

• Define Trade-Off: the sacrifice of one option to persue another _____________________________________________________________

3. Services

• Define Services: a tangible activity benifit or assistance provided to a customer. _____________________________________________________________

• List Two Examples of Services:

  • a. Haircut__________________

  • b. Banks__________________

4. Wants and Needs

• Define Wants: a desire for goods and services that are not essential for survival. _______________________________________________________________

• Define Needs: basic requirements for human survival and wellbeing ________________________________________________________________

• Categorize: Label each item as a want or a need.

  • a. Food: need __________________

  • b. New smartphone: want __________________

  • c. Water: need __________________

5. Scarcity and Shortage

• Define Scarcity: having seemingly unlimited human wants and limited resources _____________________________________________________________

• Define Shortage: when the demand for a good or service exceeds its supply _____________________________________________________________

• Question:

  • Which is a permanent condition, scarcity or shortage? Scarcity __________________

6. Economic Systems

• Match each economic system with its characteristic:

  • Market: supply and demand __________________

  • Mixed: combination of market and command __________________

  • Command: government control __________________

  • Traditional: customs and traditions __________________

• Short Answer: Explain one key difference between a market economy and a command economy.

Market is driven by supply and demand and command is when the government is in control. _____________________________________________________________________

7. Free Enterprise System

• Define Free Enterprise System: minimal government intervention __________________________________________________

8. Role of Consumers and Producers

• Define the Role of a Consumer: purchases goods and services __________________________________________________

• Define the Role of a Producer: creates the goods and services __________________________________________________

•  In the free enterprise system, who decides what goods are produced? Both consumers and producers __________________

9. Safety Net Programs

• List Two Examples of Safety Net Programs:

  • a. Medicaid __________________

  • b. SNAP__________________

• Why are safety net programs important? Safety net programs are important becuase they provide essential support in individuals and families facing economic hardship 

10. Economic Growth and Economic Freedom

• Define Economic Growth: the increase in the production of goods and services ______________________________________________________

• Define Economic Freedom: the ability of individuals and businesses to make economic decisions with out government interference ______________________________________________________

• Question: Give one example of how a country can promote economic growth.

By investing in education. 

11. Patent and Copyright

• Define Patent: a legal right granted to an inventor giving them rights to use sell and manufacture their invention _______________________________________________________________

• Define Copyright: a legal right granted to the creator of an original work ____________________________________________________________

• Example Identification:

  • a. A new invention to filter water: patent________________

  • b. A novel written by an author: copyright __________________

12. Competition and Public Disclosure Laws

• Define Competition: rivalry among businesses __________________________________________________________

• Define Public Disclosure Laws: companies to make certain information available to the public _______________________________________________

13. Households vs. Firms

• Define Household: a group of people who live together and share resources ____________________________________________________________

• Define Firm: business organization that produces goods and services _________________________________________________________________

• Question: Who supplies labor in the economy, households or firms?households _____________

14. Demand and Law of Demand

• Define Demand: the consumers willingness and ability to buy a specific good or service at a given price ______________________________________________________________

• Define the Law of Demand: as the price of a product decreases, the quantity demanded increases, and as the price of a product increase,s the quantity demanded decreases _____________________________________________________

15. Demand Schedule

• Define Demand Schedule: a table that shows the relationship between the price of a good and the quantity demanded ______________________________________________________

• Example: Create a simple demand schedule for a product (e.g., ice cream) with three price levels and the corresponding quantity demanded.

16. Income Effect and Substitution Effect

• Define Income Effect: a change in the quantity demanded of a good or service resulting from a change in consumers' purchasing power. _______________________________________________________

• Define Substitution Effect: how consumers react to a change in the price of a product by substituting it with a different product that offers a better value. ___________________________________________________

• Example:

  • If the price of beef increases, a consumer might buy more chicken instead. Which effect is this an example of? substitution__________________