wants and resources
Desires that people have that can be met by getting a product or a service
What's a want?
Society considers the natural,human,and capital resources they have.
What decisions does society need to consider
Trade off is giving up one alliterative good or service for another
Whats a trade off
Marginal Revenue is the additional income received from each increase of 1 unit in sales
Whats marginal revenue?
Consumers are the people who buy goods or services
Whats a consumer?
the 2 groups of wants are goods and services
What are the 2 groups of wants
An individual is a person
What's an individual
Opportunity cost: The cost of the next best use of time or money when choosing to do one thing or another
Whats Opportunity cost's definition?
Total cost is both fixed and variable costs.
Whats total cost?
Producer: People or business that provide goods or services.
What's the definition of Producer?
Economics is the study of how people choose to use their limited resources to satisfy their unlimited wants
What is economics
To distribute is to deliver
What's the definition of distribute
Option is an alternative or choice
Whats an option
Revenue: The money a receives from selling it's goods or services.
What's the revenue definition?
The price the marketplace sets for the good or service?
What's the Equilibrium price meaning?
Resources are all the things that can be used in making products or services that people want
What is resources
The 3 economic choices are, What goods and services will be produced? How will they be produced? & Who will consume or use them.
What are the 3 economic question
Businesses face opportunity costs that don't involve money.
Do Businesses only face opportunity costs involving money?
Fixed costs are expenses that don't change no matter how much business produces.
What are fixed costs?
What are the factors Affecting Demand
Scarcity occurs whenever we don't have enough resources to produce all of the things we would like to have
When does Scarcity occur
Market economy: An economic system in which individuals & Buisness own all resources & make economic decisions on the basis of price
To make a good decision you need to consider the benefits and the costs of each choice
How do you make a good decision?
To understand how businesses make economic decision it's useful to look at the decision other businesses usually make
How can you understand how businesses make economic decisions.
What to produce, How to produce, and for whom to produce.
What are the 3 basic questions?