Econ Notes Review

The situation of of not having enough resources to satisfy all one’s wants (in English)

For your birthday you are planning a sleepover. You have 3 very close best friends. However there is only space for 2 of them at the sleepover. This is an example of?

• Resources

• Scarcity

• Needs

• Supply

The study of how individuals and nations make choices about the ways to use scarce resources to fulfill their needs and wants (in English)

Which type of economy does the U.S. have?

• Market Economy

• Command

A Market Economy is an economic system in which ​ (a)   and prices are determined by ​ (b)   between businesses.

• production
• competition
• government regulations
• fixed prices
• consumer demand

Drop the photos below to determine goods and services

Groups:

(a) Goods

,

(b) Services

• 
• 
• 
• 
• 
• 

If the product is high in demand what does that mean?

• It means the product is overpriced and not selling well.
• It suggests that consumers are indifferent to the product.
• It indicates strong consumer interest and a potential for increased sales.
• It indicates a lack of competition in the market.

Answer explanation

If there is NO demand for booger flavored chips then people do not want them.

If the supply of booger flavored chips is high and the demand is low what might happen?

• Consumers will buy more chips despite low demand.
• The supply will remain constant regardless of demand.
• Prices may increase due to high demand.
• Prices may decrease due to having a lot of chips.

If the demand is high for an xbox but supply is low what might happen?

• Prices may increase due to high demand and low supply.
• No change in prices or supply will occur.
• Supply will increase immediately to meet demand.
• Prices may decrease due to high demand.

What is it called when one company controls all of the market for their good/serivce?

• Monopoly
• Monopsony
• Duopoly
• Oligopoly

Answer explanation

Ticketmaster is accused of having a monopoly because it controls the most if not all ticket sales for major events.