Basic Economics Vocabulary Flashcard

Front

What is the value of the next best alternative foregone when a decision is made?

Back

Opportunity Cost

Front

Which term describes the fundamental economic problem of having seemingly unlimited human wants in a world of limited resources?

Back

Scarcity

Front

What is the quantity of goods and services that producers are willing and able to offer at different prices?

Back

Supply

Front

What is the term for a market structure where many firms sell products that are similar but not identical?

Back

Monopolistic Competition

Front

What is the term for a market structure characterized by a single seller, selling a unique product in the market?

Back

Monopoly

Front

What is the economic principle that describes the relationship between the price of a good and the quantity demanded?

Back

Law of Demand

Front

What is the economic principle that describes the relationship between the price of a good and the quantity supplied?

Back

Law of Supply

Front

What is the point at which the quantity demanded and the quantity supplied meet?

Back

Equilibrium Price

Front

What is the term for a situation where the quantity demanded is greater than the quantity supplied?

Back

Shortage

Front

What is the term for a situation where the quantity supplied is greater than the quantity demanded?

Back

Surplus