EOC Economics Flashcards
6 cards from real EOC practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 EOC Economics flashcards as text
What term describes the total value of all goods and services produced within a country in a year?
Answer: Gross Domestic Product
Gross Domestic Product (GDP) measures the total monetary value of all finished goods and services produced within a country's borders in a specific time period.
When the price of a good increases, what typically happens to the quantity demanded, according to the law of demand?
Answer: It decreases
The law of demand states that as the price of a good rises, consumers will purchase less of it, assuming all other factors remain constant.
What is the term for the additional cost incurred by producing one more unit of a good or service?
Answer: Marginal cost
Marginal cost refers to the change in total production cost that comes from making or producing one additional unit of a product.
Which type of economic system relies primarily on supply and demand to determine prices and production?
Answer: Market economy
In a market economy, prices and production decisions are determined by the interactions of supply and demand with minimal government intervention.
What is 'inflation' in economic terms?
Answer: A general rise in price levels over time
Inflation is the rate at which the general level of prices for goods and services rises over time, reducing purchasing power.
What does 'opportunity cost' mean in economics?
Answer: The value of the next best alternative foregone
Opportunity cost is the value of the best alternative you give up when making a choice between competing options.