What is economics?
Microeconomics
The economics of an individual.
Economic system
An organized way to provide products for society.
Business organizations
The way that a business is run.
Demand
Demand is how much people want certain products.
Supply
The amount of goods that companies can produce.
Macroeconomics
The economics of a group of people.
Market economy
The current economy we have now, determined by supply and demand.
Sole proprietorship
A business run by one person or family.
Elastic demand
The price of something easily affects if people will buy it or not.
Quantity supplied
The amount that producers bring to the market at any given price.
Stock
A share of ownership in a company.
Command economy
The economy is controlled by the individual states.
Partnership
A business run by two or more people that isn't a corporation.
Inelastic demand
The price of something doesn't affect if people will buy it.
Supply curve
A graph showing how much was produced at any given price.
Factors of production
What producers need to buy/make in order to sell.
Traditional economy
Economy based on trade instead of currency.
Corporation
A corporation means that the owners can only lose the moneythat they put into the company.
Income effect
How much people are making changes what they will buy
Supply elasticity
How changes in price affect the amount of goods supplied.
Opportunity cost
What you lose depending on what you can produce.
Mixed economy
The economy is mostly run by individual states but the government will step in when needed.
Limited liability
When someone has llimited liability, they can only lose the money they gave to a business.
Substitution effect
If there is the same product for cheaper, people will buy it.
Subsidy
A payment from the government to a business to encourage a certain economic activity.