Vocabulary
A limited amount of resources, basic problem for all societies
scarcity
The result of two or more producers offering the same goods and services
Competition
A nation's land and all of the materials nature provides that can be used to make goods and services
Natural Resources
an economic system in which the decisions of what, how and for whom things are produced are based on customs or habits
ie; Tribes in Africa, the Amish
traditional economy
What are three things prices do in economics?
send signals to producers and consumers
answer the 3 basic economic questions
can measure the value of goods and services
quantity supplied is equal to quantity demanded
equilibrium point
Workers- and using their abilities
Labor
an economic system in which individual and businesses own all the resources and make the economic decisions. Compete to find the best prices.
The USA
market economy
When a person has to decide and choose only one good or service over others they have experienced what?
trade-off
Three things that affect human capital?
education, training, and experience
buildings and tools
capital
economic system in which the government make the major economic decisions.
Cuba/ North Korea
Command Economy
how do consumers participate in both factor and product markets?
buy factors of production
sell goods and services
The level of wealth to a certain socioeconomic class in a certain geographical area.
Standard of Living
consumers and business use math to help them decide if they should buy something
benefit-cost analysis
Type of government economy where they own some, but not all of the factors of production.
socialist economy
The ways goods ands services are produced and consumed in a country.
Economy
The next best alternative you give up by choosing to do or buy one thing over another. Applies to ALL resources (time and money)
Opportunity cost
What is a common trait in a traditional economy?
Barter to get/give goods and services
The entire activity of buying and selling that takes place in the world
Market