Economics
Refers to the economic problem of having limited resources with unlimited wants
What is scarcity
What is the relationship between quantity demanded and price?
Inverse/negative relationship, as prices rise, qty demanded falls.
North Korea, China, and Cuba have which type of economy?
What is a planned economy.
Things that people would like to have but can live without
What are wants
Land, Labor, Capital, Entrepreneurs (Technology)
What are the 4 factors of production
Someone who buys goods and services
What is a consumer
What is a factor that may shift the demand curve
Consumer preference, substitution effect, income effect
The type of economy where producers and consumers decide what to sell, who to, and how to produce.
Market economy
Things that people must have to survive
What are needs
the "gift of nature", includes natural resources that are not created by man.
Land
The study of how society chooses to use scarce resources to satisfy its unlimited wants and needs
What is economics?
What does Ceteris Paribus mean?
All else held equal
What is a mixed economy?
An economy that has elements of both market and planned economies. Some industries controlled by government, while others by private owners.
the cost of the next best alternative us of money, time, and resources when one choice is made over another.
What is opportunity cost?
The effort people contribute to the production of goods and services
What is labour
The economic model that shows all possible combinations of production of two different types of goods.
What are production possibilities curves/frontier
When demand exceeds supply
Shortage
One advantage to a market economy
Efficiency, incentives for innovation, more choice of products.
The measure of usefulness and satisfaction to a consumer.
What is Utility
tools and machinery are examples of this type of good
What is capital good
Wrote the Wealth of Nations. The father of modern economics, describes the "invisible hand of the market".
Who is Adam Smith.
The point on a supply and demand model where supply and demand intersect
Equilibrium (also a good action movie with Christian Bale and Sean Bean)
One advantage to a planned economy
Basic needs are met, greater income equality
As you increase the production of one good, the opportunity cost to produce the additional good will increase.
What is the Law of increasing opportunity cost
is an individual who searches for profit in a new field with existing resources.
What is an entrepreneur