L3 Flashcards
(20 cards)
Law of supply states that as prices increase,
quantity supplied will also increase
A change in market price will ___ the supply curve
create a movement along
assume the supply curve below is for red wine, if the market price were $30 a bottle, how many bottles would be supplied?
30
Supply in economics is defined as a ___ a given good at various price points.
producers willingness and ability to produce
An increase in market price from $15 to $30 would ___
increase quanity supplied from 10 to 30
In a market economy who controls the factors of production?
The citizens
Many countries fall under what economic system?
Mixed Market
In a mixed market economy who controls the factors of production?
Both the government and the citizens
What are the 5 factors of production?
Labor, capital, information resources, physical resources, and entrepreneurs
In a planned economy who controls the factors of production
The government
What are some advantages of owning a buisness in a free market system?
Buisness owners can make decisions about operations and pricing for their business
what right does a seller have in a free market system when demand for a product goes up?
The seller has the right to adjust the prices up to match the demand of the product
How is a free market advantageous to consumers?
consumers can choose how and where to spend their money
What is a free market?
An economic system created by little reguation between buyers and sellers
which of the following is an example of economic freedom for businesses in a free market system
all of the answers
An advantage of a command economy is ___
people have acess to healthcare at little to no cost
one common feature that both cuba and north korea share is ___
the unemployment rate is low
a command economy is
an economy in which the government has the power over the finantial management of the country
two examples of where a command economy exists are ____
Cuba and North Korea
A charicteristic of a command economy is ___
State has all power over resources
