Lesson 1
What are desires that people have?
wants
trading a good or service for another
trade-off
The amount of a good or service that people are willing to buy
demand
a market can also exist on the ______.
internet
societies have different ways of ___________ goods.
distributing
What are all the things that can be used in making products or services?
Resources
the increase in expenses caused by producing another unit of something
Marginal cost
place where buyers and sellers come together.
market
the people who buy goods and services
consumers
planners who work for the government answer the economic questions.
command economy
command economy
What are the 3 types of resources?
Natural resources labor and capital
what is the money a business receives from selling its goods?
revenue
what are the 2 key factors that affect supply?
number of suppliers and the cost of production.
people that provide goods and services
producers
the us is based on a _______ _________
Market economy
Occurs whenever we do not have enough resources
scarcity
additional income received from each increase of one unit in sales
marginal revenue
struggle among sellers
competition
additional income received from each increase of one unit sales.
marginal revenue
if the price is lower than the equilibrium price there is a...?
shortage
what kind of economy does the us have?
mixed market economy
helps businesses choose among 2, 3 or more projects.
Benefit-cost analysis
the amount supplied is greater than the amount demanded.
surplus
expenses that do not change no matter how much a business produces.
fixed costs
demand and supply are balanced
equilibrium price