Economics Flashcard

Front

What is the study of the economy or the part of society that deals with wealth?

Back

Economics

Front

Imagine you are planning a birthday party and need to buy decorations, food, and gifts. In this scenario, what role do you play in the marketplace?

Back

A person who purchases goods and services for personal use

Front

What does the term "demand" refer to in the scenario where a new smartphone is released and stores are running out of stock quickly because so many people want to buy it?

Back

Consumer's desire for something

Front

Imagine you are at a grocery store and you notice a sign on one of the shelves. If the sign is showing the term "scarcity", what would the sign show?

Back

A sign indicating a product is out of stock

Front

Imagine a small town where local businesses set their own prices for goods and services without any interference. What type of economic system does this town have?

Back

A system where prices of goods and services are not controlled by the government.

Front

What is the definition of "Opportunity Cost" in the scenario where Sarah has $100 and is deciding between buying a new pair of shoes or going to a concert?

Back

Whatever must be given up to obtain some item (next best option)

Front

Imagine you live in a small village where money doesn't exist, and you need to trade goods to get what you need. What is a common problem you might face in this barter system?

Back

Finding someone who wants what you have

Front

What do you call the process of exchanging goods directly without using any money, such as exchanging a basket of apples for a bag of rice?

Back

Barter

Front

If new Jordan shoes are released and the supply cannot keep up with the number of people who want to buy it, what is likely to happen to the price?

Back

The price will increase because the demand is higher than the supply.

Front

What happens in an economy when the nation can't produce enough goods for the overall demand of the nation?

Back

Scarcity