financial literacy

1. producers and consumers must choose to spend their resources because resources are scarce

2. resources that are used to produce goods and services are known as factors of production

3. the name of the trade off you make is called the opportunity cost

4. the study of people wanting to meet their needs and wants is called economics

5. what coordinates trade? markets

6. demand is the desire and the ability to own something

7. according to the law of demand what chiefly influences demand ? price

8. if you survey a group of people at what price point they would purchase goods, what are you creating ? a demand schedule

9. during an economic recession, demand decreases due to lower income

10. if you buy a charging cord after buying a cellphone youre buying a complementary good

11. goldstar is what compared to skyline? substitute goods

12. how does demand go up and down based on complimentary (if one goes up the other goes up) and substitute (negative, one goes up, the other goes donw)

13. the law of supply states the price increases, the quantity will also increase supply

14. another name for equilibrium price? market clearing

15. if the price is set above the equilibrium price, it is usually what? price floor + surplus

16. rent control is an example of a price ceiling

17. if there is a shortage of gas, what can you do to lower the price? drill baby drill

18. what is economics?

    • the study of how people satisfy needs and wants through choices.

19. what is scarcity?

    • a limited amount of resources cannot meet unlimited wants.

20. what is tanstaafl?

    • “there ain't no such thing as a free lunch” – everything has a cost.

21. what are the factors of production?

    • land, labor, capital, entrepreneurship.

22. what is a trade-off?

    • giving up one benefit for another.

23. what is opportunity cost?

    • the most desirable alternative given up in a decision.

24. what is demand?

    • desire and ability to pay for a good or service.

25. what is the law of demand?

    • lower prices lead to higher demand, higher prices lead to lower demand.

26. what is a demand curve?

    • a graph showing the relationship between price and demand.

27. what is supply?

• the amount of goods available.

11. what is the law of supply?

• as price increases, supply increases.

12. what is a supply schedule?

• a table showing how much of a good will be supplied at different prices.

13. what is a market economy?

• an economy where individuals make decisions.

14. what is a command economy?

• an economy where the government makes decisions.

15. what is a mixed economy?

• an economy with both government control and individual decision-making.

16. what is a traditional economy?

• an economy based on customs and traditions.

17. what are complementary goods?

• goods that are used together (e.g., cars and tires).

18. what are substitute goods?

• goods that can replace each other (e.g., coke and pepsi).

19. what is the market demand schedule?

• a table showing demand for a good in an entire market.

20. what is an entrepreneur?

• a person who combines resources to create goods and services.

short answer ; seven principles of economics and examples