Economic Concepts Flashcards

Front

Consumers waiting in long lines for a new product is an example of scarcity.

Back

Scarcity occurs when demand exceeds supply, leading to limited availability.

Front

A major advantage of a market economy is a high degree of individual freedom.

Back

Market economies allow individuals to make their own economic decisions with minimal government intervention.

Front

Consumerism involves the protection and promotion of consumer interests.

Back

Consumerism encourages the acquisition of goods and services in ever-increasing amounts.

Front

Command economies are characterized by centralized control over economic decisions.

Back

In command economies, the government makes all decisions regarding production and distribution.

Front

Traditional economy

Back

An economic system that relies on customs, history, and time-honored beliefs.

Front

Profit motive

Back

The drive for the improvement of material well-being through economic activities.

Front

Elastic supply curve

Back

A supply curve that shows a significant change in quantity supplied when there is a change in price.

Front

Variable cost is generally associated with machines and other capital goods.

Back

Variable cost

Front

Low prices signal buyers to buy more.

Back

Low prices

Front

The unemployment rate includes people who made an effort to find a job during the past month.

Back

This defines how the unemployment rate is calculated.