Economic Concepts Flashcard

Front

What economic concept describes the total amount of goods and services that consumers are willing and able to purchase at different prices?

Back

Demand curve

Front

Which market structure is characterized by many sellers, standardized products, and no barriers to entry?

Back

Perfect competition

Front

In a market economy, what is the primary factor that determines the allocation of resources?

Back

Price mechanism

Front

What type of unemployment occurs when workers are temporarily between jobs?

Back

Frictional unemployment

Front

In microeconomics, what happens to demand when price increases?

Back

Demand decreases

Front

What type of economic system relies on customs and traditions to answer basic economic questions?

Back

Traditional economy

Front

What characterizes a monopolistic competition market structure?

Back

Product differentiation

Front

Which is a characteristic of scarcity? Mark only one oval. Options: It only affects poor nations, It can be eliminated with technology, It exists in all economies, It's caused by poor management

Back

It exists in all economies

Front

In a command economy, who makes the major economic decisions?

Back

Government

Front

Based on the economic concepts covered, which of these best describes how supply and demand reach equilibrium? Mark only one oval. Options: When government sets the price, When quantity supplied equals quantity demanded, When producers maximize profit, When consumers spend all their income

Back

When quantity supplied equals quantity demanded