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Unit 6 B (MC) The Economy and the Individual Flashcards

front 1

Which of th e terms describes an economy in which prices form the basis for economic decisions?

back 1

market

front 2

What is the term for the act of buyers and sellers freely engaging in market transactions?

back 2

voluntary exchange

front 3

A product for which quantity changes very little when prices go up or down is said to be _____________________

back 3

supply inelastic.

front 4

What kind of shop does not require workers to join a union, but allows
them to choose to do so?

back 4

modified union

front 5

What occurs when we lack the resources to produce the things
we want.

back 5

Scarcity

front 6

When a job is broken down into several, smaller tasks that are

performed by different workers, it is called _________________

back 6

division of labor.

front 7

What are expenses that increase as production grows?

back 7

variable costs

front 8

Which term means that stockh olders are not responsible for the debts of the corporation?

back 8

limited liability

front 9

If price changes have little effect on the quantity of a product demanded the product is said to have _________________

back 9

inelastic demand.

front 10

Which principle shows how additional satisfaction decreases as more units are consumed?

back 10

diminishing marginal utility