Resources
Land, water, trees, oil are example of this type of resource.
What is Natural resources?
The inability to satisfy all wants at the same time.
What is Scarcity?
the combining of human, natural, capital, and entrepreneurship resources to make goods or provide services.
What is Production?
Based on custom & historical precedent Performing same type of work as parents/grandparents
What is Traditional Economy?
Occur whenever buying and selling take place. Operate without interference from government.
What is markets?
The people who work to do a job.
What are human resources?
selecting an item or action from a set of possible alternatives
What is Choice?
a system used to buy or sell goods and services
What is Economy?
Economy that has private ownership; profit motive; competition;consumer sovereignty;individual choice & minimal govt involvement
What is market economy?
right to own real and personal property without interference from the government
What is private property?
money invested in business; also property or equipment
What is Capital Resources?
What is given up when a choice is made - the highest valued alternative forgone.
What is opportunity cost?
Consumption
What is the use of goods and services?
Economy that has central ownership; centrally planned economy; lack of consumer choice
What is command economy?
Profit formula
What is earnings - expenses?
a person who starts a new business using resources
What is an Entrepreneur?
The using of goods and services.
What is consumption?
the amount of money exchanged for a good or service
What is Price?
Economy in which owners/decision makers for private sector; govt is owner and decision maker for public sector; governments role greater in free market but less in command economy; most economies today including US
What is Mixed economy?
rivalry between producers/sellers of a good or service.
What is Competition?
Factors of production used for the production of goods and services
What are Resources?
What determines price.
What is Supply and demand?
consists of earnings after all expenses have been paid
What is Profit?
Three basic questions of economics
What will be produced? Who will produce it? For whom will it be produced?
consumers determining through purchases what good/services will be produced
What is Consumer sovereignty?