Economic Concepts Flashcard

Front

Scarcity occurs because resources are __, but human wants are unlimited.

Back

limited

Front

In the circular flow model, households are the __ of resources.

Back

suppliers

Front

Economic freedom allows individuals to make their own __ decisions.

Back

choices

Front

A __ is a legal maximum price set by the government.

Back

price ceiling

Front

When quantity demanded exceeds quantity supplied, it is known as a __.

Back

shortage

Front

What is the primary reason scarcity exists in economies?

Back

Limited resources

Front

In the circular flow model, what role do firms play?

Back

They produce goods and services

Front

Which of the following is a characteristic of a market economy? Government ownership of resources, Centralized decision-making, Economic freedom, Fixed prices by the government

Back

Economic freedom

Front

What happens when a price ceiling is set below the equilibrium price?

Back

Shortage

Front

Which factor does not directly affect supply in the market? Options: Production costs, Technology, Number of sellers

Back

Consumer preferences