Basic Economics
What is economics
Economics is the study of the allocation of resources among alternative uses to attain desired needs
What are forms land can take on
-agricultural land
-commercial real estate
What is a cost-benefit analysis
A cost-benefit analysis is the process used to measure the benefits of a decision or taking action minus the costs associated with taking that action
What is a traditional market economy
The system is well understood by participants and Individuals roles are clearly defined. commonly found in rural settings in second and third world nations.The traditional economic system is based on goods, services, and work, all of which follow certain established trends
What is Macroeconomics
studies the behavior of a country and how its policies impact the economy as a whole… GDP, imports/exports, big picture
What is entrepreneurship
the ability of an individual to take initiative to create a business
Provide an example of a Cost and Benefit explain.
Lemonade Stand.
What is a market Economy
based on the concept of free markets with very little government interference
-government exercises little control over resources, and it does not interfere with important segments of the economy
-The market economic system is mostly theoretical…. a pure market system doesn’t really exist
What is Microeconomics
the study of decisions made by people and businesses regarding the allocation of resources, and prices at which they trade goods and services. It considers taxes, regulations, and government legislation
Name three factors of production.
Land, Labor, Entrepreneurship, Capital
What part of a cost-benefit analysis step is this.
-understand your situation, identify your goals, and create a framework
Set your analysis plan step one
What is a Command Economy
-economic system in which the means of production are publicly owned and economic activity is controlled by a dominant central authority usually the government
–controls a significant portion of the economic structure
Name two of the essential questions an economy needs to find out to have a successful economy.
FIVE IN TOTAL
WHAT to produce
HOW MUCH to produce
HOW to produce it
FOR WHOM to produce it for
WHO makes these decisions
What in an example of a good and service
Combine. According to Joe our hand-sanitizer. Restaurants (eating food good, getting waited on is the service.)
Name two steps in the cost-benefit analysis step.
1.set the analysis plan
2. determine your costs
3. determine your benefits
4. perform analysis of both costs and benefits
5. make a final recommendation
What is a mixed economy
-Mixed systems combine the characteristics of the market and command economic systems
What is scarcity and shortage
Scarcity: occurs when there are limited quantities of resources to meet unlimited needs or desires
Shortage: occur when producers will not or cannot offer goods or services at current prices