what is Econmics?
What is economics?
The study of how people use limited resources to satisfy wants and needs.
What is an economic system?
A way a society organizes its economy.
What is a sole proprietorship?
A business owned by one person.
What is demand?
The amount of a good or service consumers are willing and able to buy.
What is supply?
The amount of a good or service producers are willing and able to sell.
What is scarcity?
When there are limited resources but unlimited wants.
What are the three basic economic questions?
What to produce, how to produce, and for whom to produce.
What is a partnership?
A business owned by two or more people.
What happens to demand when the price goes up?
Demand usually goes down.
What happens to demand when the price goes up?
Demand usually goes down.
What is opportunity cost?
The next best choice you give up when making a decision.
What system is based mainly on customs and traditions?
Traditional economy.
What is a corporation?
A business owned by shareholders.
What is the law of demand?
As price increases, quantity demanded usually decreases.
What is the law of demand?
As price increases, quantity demanded usually decreases.
What are the four factors of production?
Land, labor, capital, and entrepreneurship.
What economic system gives the government most control over production?
Command economy.
What is one advantage of a corporation?
Owners have limited liability.
Name one factor that can shift demand.
Income, tastes, expectations, population, or prices of related goods.
Name one factor that can shift supply.
Production costs, technology, taxes, subsidies, or number of sellers.
Why is scarcity important in economics?
Because resources are limited, people must make choices about how to use them
How is a mixed economy different from a command economy?
A mixed economy uses both private markets and government involvement.
Why might someone choose a partnership instead of a sole proprietorship?
Partners can share responsibilities, skills, and costs.
If the price of a product decreases, what usually happens to quantity demanded and why?
Quantity demanded increases because consumers are more willing and able to buy it.
If production costs increase, what will likely happen to supply?
Supply will decrease because it becomes more expensive for producers to make the product.