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Economics
FOR TEST
13
Economics
7th Grade
10/04/2011

Additional Economics Flashcards

 


 

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Term

 

 

 

 

ECONOMY

 

 

 

Definition
The study of how goods and services are produced and distributed.
Term
Scarcity
Definition
This occurs when an item is “scarce” or the supply is limited. The price goes up because many people want to buy it. How much would you pay for a ticket to see a sold out concert to see your favorite band.
Term
Incentives
Definition
Companies use incentives or special deals, to get us to buy products.
Term
Free enterprise
Definition
This is the American economic system. People are allowed to make personal economic decisions. Another name for this system is CAPITALISM . Everyone is allowed to own private property
Term
Supply and Demand
Definition
Consumers determine supply by their demand for goods. When the demand goes down, supply goes down.
Term
What happens to the price of items when demand is high?  Products can set a high price because people will pay it.
Definition
Products can set a high price because people will pay it.

Term
What happens if demand goes up but the supply is low?
Definition
 Gasoline is a good example
Term
What happens when demand is low and supply is high?
Definition
 Price goes down.
Term
Monopoly
Definition
When only one producer provides a good or service. This gives them to much power to set high prices.
Term
If consumers really need the goods or service, they will be forced to pay the high price because it is the only price.
Definition
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