Economics is the study of how individuals, businesses, and governments make choices about the allocation of scarce resources to satisfy their unlimited wants.
What are the two main branches of economics?
The two main branches of economics are microeconomics and macroeconomics.
What is the law of supply?
The law of supply states that as the price of a good or service increases, the quantity supplied by producers also increases, and vice versa.
What is the law of demand?
The law of demand states that as the price of a good or service increases, the quantity demanded by consumers decreases, and vice versa.
What is opportunity cost?
Opportunity cost is the value of the next best alternative that is forgone when making a decision.
What is inflation?
Inflation is the sustained increase in the general level of prices for goods and services in an economy over a period of time.
What is a monopoly?
A monopoly is a market structure in which there is only one seller of a good or service that has no close substitutes.
What is GDP?
Gross Domestic Product (GDP) is the total value of all final goods and services produced within a country in a given period of time, usually a year.
What is a recession?
A recession is a significant decline in economic activity, generally characterized by a contraction in the GDP for two consecutive quarters.
What is the difference between a market economy and a command economy?
In a market economy, the allocation of resources is determined by supply and demand in the marketplace, while in a command economy, the government controls the allocation of resources.
What is a budget deficit?
A budget deficit occurs when a government spends more money than it collects in revenue during a specific period of time.
What is the law of diminishing marginal utility?
The law of diminishing marginal utility states that as a person consumes more of a good or service, the additional satisfaction or utility gained from each additional unit of the good or service decreases.
What is a tariff?
A tariff is a tax imposed on imported goods and services to make them more expensive and less competitive in the domestic market.
What is a market failure?
A market failure occurs when the allocation of resources by the free market is inefficient, resulting in a misallocation of goods and services.
What is economic inequality?
Economic inequality refers to the unequal distribution of income and wealth among individuals and households in an economy.