FLC: Economic Basics Flashcards
How does supply and demand affect price of goods or services
When supply by company = demand, buyers and sellers agree on price. equillibrium. the curve is self explanatory.
a shortage will result in the quality to …
fall ? maybe by quality she meant demand?
economies of sale
the tendency of the cost per item to go down when items are bought in/produced in large quantities
economic resource
natural resources, human resources, and capital resouces
inlfation
a time when overall purchasing power deceases bc prices are going up
what are primary determinants of the price of a product
supply and demand
if inflation rate is 4% and salary increased 3%, your purchasing power has…
decreased by 1%
CPI
Consumer price index. a measure of the cost of goods and services for the avg household in canada. Used by Bank of Canada to monitor inflation
Opportunity cost
cost of an alternative that must be forgone in order to pursue a certain action
pure market economy
economy that relies exclusively on markets to allocate resources. no government
how to calculate productivity
amount of output (products) with a given input (resource)
what item would you expect to see the greatest fluctuation in price
gasoline
the demand curve on a supply and demand graph will generally slope..
down to the right
