What is Economics? (Unit 1)
What is the difference between long-term decision-making and short-term decision-making?
Short-term decision-making is a decision that only affects short term like how many burger patties to order. Long-term decision making is a decision that affects the long term like deciding to take burgers off the menu.
What is the definition of an "economic system"
An organized way to provide for the wants and needs of society
What are the two types of mergers?
Horizontal and vertical.
what is elastic demand
when the price of a product changes, the corresponding change in the quantity demanded is relatively larger.
what is supply
The amount of a product that could be bought at all possible prices that could prevail in the market
What is the difference between skilled and unskilled labor?
Anybody can do unskilled labor. Skilled labor requires extra knowledge or special skills to complete.
What is the definition of "socialism"?
A political and economic system in which the factors of production are owned and controlled collectively by the state.
What is a vertical merger?
when two companies of little or no similarity merge
what is inelastic demand
when the price of a product changes, the corresponding change in the quantity demanded is relatively smaller.
what is quantity supplied
Amount that producers bring to the market at any given price
What is an Entrepreneur?
people who bring about innovation
What kind of economy does the USA have?
Market Economy
What is a horizontal merger?
when companies of a similar connection merge.
what are the two types of demand
elastic and inelastic
what is supply curve
A graph showing the various quantities supplied at each and every price that might prevail in the market
What is the definition of "Capital" in economics?
capital goods, or man-made resources, such as tools and infrastructure, used in the production of a good or service
What is a mixed economy
Contains elements of all three types of economies.
Organization of workers formed to represent its members’ interests in various employment matters
what is microeconomics
Area of economics that deals with behavior and decision making of small units
what is supply elasticty
Measure of the way in which quantity supplied responds to a change in price
What are the six factors of production
1. Land
2. Capital
3. Labor
4. Entrepreneurs
5. Production
6. Decision-Making
What are the three main types of economies?
market economy, command economy and traditional economy
What are the three types of businesses?
sole proprietorships, partnerships, and corporations.
what is marginal utility
The extra usefulness or satisfaction a person gets from acquiring or using one more unit of a product
what is subsidy
A government payment to an individual, business, or other group to encourage or protect a certain type of economic activity