Economic Systems
Methods used by a society to produce and distribute good and services
Economic systems
Deals with quantity and price
Demand
The point where quantity demanded and quantity supplied are equal
Equilibrium
The three types of partnerships
General, Limited, and Limited Liability
Wage rate that produces neither an excess supply of workers not and excess demand of workers
Equilibrium Wage
Making the most of resources
Economic efficiency
Consumers buy more of a good when its price decreases and less when price increases
Law of Demand
Any point that isn’t equilibrium
Disequilibrium
Most common type of partnership- partners share equally in both responsibility and liability
General Partnership
The value of output
Productivity
A nation’s economy must grow in order for the standard of living to improve
Economic Growth and Innovation
The change in consumption resulting from a change in real income
Income effect
Occurs when prices are low, known as a shortage
Excess Demand
Similar to Limited partnership, except every partner is Limited Partner; no general partners
Limited Liability Partnership
Requires advanced skills and education, usually white-collar workers who receive a salary
Professional labor
Income people receive for supplying factors of production such as; land, labor, capital, entrepreneurship
Factor Payments
A table that lists the quantity of a good all consumers in a market will buy at each different price
Market Demand Schedule
A maximum price, set by the government, that sellers can charge for a good or service
Price Ceiling
If partners don’t establish their own agreements, they automatically fall under to ....
Uniform Partnership Act (UPA)
occurs when workers with the same job, same skills and education, same job performance, and same seniority receive unequal pay
Wage Discrimination