Economics Vocabulary Review

Front

Why do all societies have to make decisions about how resources will be used?

Back

There are not enough resources for those who want them

Front

Scarcity is defined as a limited supply of resources and...

Back

unlimited wants for available resources

Front

What is the opportunity cost of the bakery's decision to make cookies instead of muffins?

Back

muffins

Front

What is the opportunity cost of the Welch family's decision to spend money on a swimming pool instead of a vacation to the Grand Canyon?

Back

vacation

Front

What is opportunity cost?

Back

what you give up to make a choice

Front

The law of demand states that if the price of CD’s rise, consumers will

Back

Buy fewer CDs

Front

The law of supply states that if the price of CD’s rise, suppliers will

Back

Supply more CDs

Front

Which of the following will cause an increase in demand for snowboards? Options: More costly production methods, A decrease in the price of lift tickets at resorts in Colorado, A decrease in consumer income, A decrease in the population

Back

A decrease in the price of lift tickets at resorts in Colorado

Front

What does a “surplus” (extra amount) of goods in a market imply?

Back

Prices are too high

Front

What happens to the market for gasoline due to Americans cutting back on family vacation road trips?

Back

Demand for gasoline will decrease