What is Elasticity of Demand?
A measure of how sensitive demand is to changes in price.
What is the Law of Supply?
As price increases, supply increases; as price decreases, supply decreases.
What is the Law of Demand?
As price decreases, demand increases; as price increases, demand decreases.
What is Microeconomics?
The study of individual consumers, firms, and markets.
What are the main Economic Systems?
Capitalism, Socialism, and Mixed Economy.
What is the difference between Positive and Normative Economics?
Positive Economics deals with facts, while Normative Economics is based on opinions and values.
What is Opportunity Cost?
The value of the next best alternative that is given up when making a choice
What does Scarcity mean?
Scarcity occurs when resources are limited but human wants are unlimited.
What is Economics?
The study of how limited resources are used to satisfy unlimited wants.
Summary
15.1 The Federal Reserve Banking System and Central Banks The most prominent task of a central bank is to conduct monetary policy, which involves changes to interest rates and credit conditions, affecting the amount of borrowing and spending in an economy.…