Slides 3-9
What is scarcity
Not being able to buy what we wanted due to lack of supply
What do business organize
They organize by hiring many owners in a stock and works on it, but the owners still gets to keep the profits.
Sometimes two or more partners could be partners
What is a supply
A supply is a product that is made from a company and made to be sold at a given price.
Law of supply says if the product becomes popular, then they will make more of it.
What is a bank
It is a business that holds people money and pays interest.
They will lend money to people who needs them to buy something.
What is opportunity cost
When you have to choose between items that cost the same.
Explain the type of corporation
The corporation uses the money of all owners from their businesses. People buys shares and becomes owners. The shareholders owns a percentage of a company and the company divides the profits with many owners who owns shares.
What is a demand
The demand of the product depends on how much people are there to buy the product.
The law of demand says that if the product becomes expensive or rare, then less people will buy it.
What is a loan
A loan is when you pay a higher price when you lend money from a bank.
What is goods
Something that a business made for people to purchase
What are recorces
Recorces are like a gift from nature where people work as a human recourse, they produce things for the company. They include soil, trees, iron, and food.
Give examples of how the demand will change
1) If people have less money, demand will go down, so less people will buy it
2) If people have more money, the demand will change, so more people will buy it
What is an interest
An interest is where the person pays a percentage of what they lend.
They also get a percentage if they let the bank hold their money
What an economic and what is a service
Economic: The study of distribution, consumer and usage of goods and services
Service: Something people pay from the business
What is income
Capital recorces are machinery, workers, tools, and factories. They all produce products.
Income is what people use their money to buy. We receive income from working like making things.
People who owns land receive rent, workers receive income, Owners of factories and businesses receive profits from purchased items
Explain reasons why people won’t buy the product
Explain reasons why people will buy the product
The costumers won’t buy the product due to
1. Poor quantity, 2. No longer popular, 3. Outdated
The costumers will buy the product due to
1. Good quantity, 2. Popular, 3.Newest version
Why do business have to decide
They can’t sell everything, the business must depend on what they sell and what they make
Explain some supply and demand
If supply increases and demand stays the same, price will go down
If supple decreases and demand stays the same, price will go up
If supply stays the same and demand increases price will go up
If supply stays the same and demand decreases, price will go down
What is income profit
Income profit is when a business makes a product that is way expensive they the cost to make it.
This means the workers who generates the goods and services will receive money.