Economics 101
Refers to the economic problem of having limited resources with unlimited wants
What is scarcity?
Things that people must have to survive
What are needs?
Things that people would like to have but CAN live without
What are wants?
The alternative choices that you give up in favor of the choice you made.
What is trade-off?
The seven types of business ownerships taught in class.
What are sole proprietorship, partnership, limited liability corporation, corporation, non profit, and cooperative businesses?
Someone who buys goods and services
What is a consumer?
Actions done for others in exchange for payment
What are services?
Tangible items that people consume or use
What are goods?
An individual who searches for profit in a new field with existing resources at high risk.
What is an entrepreneur?
The three basic economic questions.
What is, What to produce, How to produce goods and services, and How to distribute goods and services?
The study of how society chooses to use scarce resources to satisfy its unlimited wants and needs
What is economics?
The "sweet spot" where price is stable and there is neither a shortage, nor a surplus.
What is market equilibrium?
The effort people contribute to the production of goods and services
What is labor?
Things the earth provides that are not created by man.
What are natural resources?
Where did Mrs. Hill attend undergrad and graduate school?
What is Virginia Tech?
A good that last three or more years.
What is a durable good?
On an supply and demand graph, this area is ABOVE market equilibrium.
What is surplus?
This law states that when the price of a good or service rises, the supply of that good or service will also increase.
What is the Law of Supply?
Measures a country's output and economic health
What is GDP (gross domestic product)?
Land, Labor, and Capital, and Entrepreneurship.
What are the factors of production?
In countries like North Korea, the type of economy is driven by what the government decides to produce.
What is a command economy?
The cost of the next best alternative use of money, time, and resources when one choice is made over another.
What is opportunity cost?
Tools and machinery are examples of this type of good
What is a capital good?
This law states that consumers (people who buy) will buy more goods and services when prices are low and less when prices are high.
What is the Law of Demand?
On an supply and demand graph, this area is BELOW market equilibrium.
What is shortage?