Term
| a simplified representation or map of an economy |
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| where you exchange your labor for money to spend on goods and services |
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| authority to use or trade a good or resource |
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| rivalry among businesses for the consumers dollar |
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| a function of money which enables people to make exchanges more easily with one another |
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| money remaining after deducting costs from sales |
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| increased production of goods and services |
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| provides signals for what will be produced |
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| those who use goods and services |
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| the movement of money, products, and resources between households and businesses. |
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| the circular flow model shows all of the following, except |
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Definition
| businesses selling resources to households |
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| many businesses work together as a team to provide you with products like bread and peanut butter. for the most part, businesses do this in our economy because they are guided by |
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| the circular flow is a simplified picture of our economy in which |
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| an economy based on voluntary exchange operates automatically when |
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Definition
| market competition is unrestricted |
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Term
| throughout history people have used money mainly because |
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Term
| your employer pays you with a check, and you deposit the check in your checking account. which of the following best described the money you have accepted as payment for your work? |
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Definition
| numbers in a computerized bank ledger |
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Term
| in a free enterprise system |
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Definition
| individuals may organize any lawful business |
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| when resources are privately owned, |
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Definition
| people have incentives to use them carefully and productively |
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Term
| in a market economy prices provide information. this means that prices |
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Definition
| usually tell businesses about the values consumers put on various products |
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| competition can take many forms, but there would be no competition at all without |
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| in resource markets businesses compete against |
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| most businesses earn their profits by |
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Definition
| selling what consumers want to buy at prices they are willing to pay |
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| an economy with many entrepeneurs would probably |
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Definition
| see the development of many new products and production methods |
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| exists when the price effect is substantial |
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| business people bear this when producing things we want |
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| usually rises as the rate of production increases |
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| the various amounts of something a producer is willing and able to sell at different possible prices |
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| producers want to sell more at higher prices than at lower prices |
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| causes the supply curve to shift to the right |
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| exists when the price effect is small |
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| people want to sell less of a product at all possible prices |
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| the sum of all producers supplies in a given market |
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| can cause todays supply curve to shift to the left |
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Definition
| expectations of higher future prices for a product |
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| when something is produced, there is always |
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Definition
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| producers usually sell more at higher prices than at lower prices because |
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Definition
| their marginal costs usally rise as they increase population |
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Term
| company A can produce a product at a constant marginal cost. this means that |
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Definition
| the company's total cost rises by the same amount every time it increases production by one unit |
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Term
| in the last column the amount supplied by the market at a price of $4 is missing. the missing quantity is |
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Definition
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Term
| business A's supply of ice cream |
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Definition
| is shown by the entire column of numbers for Business A |
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Term
| suppose the costs of milk and other ingredients of ice cream rise sharply and the marginal cost increases. as a result, |
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Definition
| each business would want to sell a smaller quantity at every price shown, so the market supply would shift to the left |
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Term
| if the price of beef rises and remains at the higher level, then over time the supply of beef |
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Definition
| becomes more elastic because ranchers have more time to bring resources into cattle production |
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Term
| which of the following would not shift the supply curve of car-washing services to the right? |
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Definition
| the price of water goes up |
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Term
| a supply curve shows that in a market economy consumers get more of a product by |
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Definition
| offering producers more money in exchange for the product |
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| if bad weather destroys much of the halloween pumpkin crop, then |
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Definition
| growers will offer fewer pumpkins at each and every price |
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