Economics Chapter 1 & 2 quiz

Economics:
 
A social science that studies the scarce resources between the competing needs and wants of society
Scarcity:
 
When it is limited in supply and desired
Other
Please Specify:
Market:
A place where buyers and sellers come together to engage in exchange with one another
Other
Please Specify:
Opportunity Cost:
Is what must be given up in order to make any economic excgange
The 3 Factors of Production (F.O.P):
Land (natural resources), Labour(employees), Capital (tools for production)
The 3 Basic Questions:
What?, How?, For Whom?
PPC:
Scarcity (all we can produce/ efficiency), Choices(Butter or Guns), Opportunity cost (what to give up to get to C)
Demand:
The quantity of a good or service that consumers are willing and able to buy
5 factors of Demand:
1. Income, 2. Price of related goods, 3. Taste & Preferences, 4. Expectations, 5. Number of consumers
Extra 3 Shifters of Demand:
1. Demographic change (age, gender), 2. Government policy (Laws: don't drink afte 12 o'clock, 3. Seasonal change (Temperature: ice cream in summer)
Income (downwards): The more
Normal Goods (Demand increases as income rises), 2. Inferior Goods (less demand for cheaper alternative goods than high quality), 3. Substitute Goods ( Increase of price for a good leads to a switch to a substitute good), 4. Complementary Goods ( Goods that are connected so if the price one good decreases the other good will have an Increase in demand)
Supply:
The quantity of a good or service that producers are willing to offer for sale
5 Shifters of Supply:
1. Price of Resources (the cost of producing it), 2. Number of producers (is it popular to produce), 3. Technology (How effective is the technology/production), 4. Taxes and Subsidies (How much tax do I lose or gain), 5. Expectations (when is it the right time to produce it)
2 Extra shifters of Supply:
1. Price of related goods (which good is cheaper to produce), 2. Supply shocks (natural disasters)
Profit incentive (Upwards): The more money I get, the more time and quantity Im willing to give
 
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