Budgeting
This helps people keep track of the money going in and out of their household
Budget
Traditional
Define subsidy
A payment made by the govt to a company to encourage economic activity
The next best alternative given up when a choice is made. (The one with a value attached)
Opportunity cost
What are the 4 factors of production
Land labor capital entrepreneur
What are the two different types of income?
Net and Gross
In a pure command economy, who makes all economic decisions?
Govt/ruler/dictator etc.
What would most economists use to study how production of a firm changes as more units of labor are introduced?
Production schedule/function
A motivating influence that causes someone to act in a certain way
Incentive
On a PPC, a point labeled as efficient would be located where?
on the curve/line
A vacation would be classified as what type of expense?
Planned
In what type of economy is the WHAT HOW AND FOR WHOM questions answered by people who make supply and demand decisions in their own best interest?
Market
Jimmy has been working at the cupcake factory for 49 years. Jimmy went in to work one day to find out that he had been laid off. what stage of production must the cupcake factory be in to have made the decision to send jimmy home after all those years?
Stage 3
An economic theory that deals with activity and decision making by individual units
Microeconomics
A good that is intended to last more than three years when used on a regular basis is known as a ________
Durable good
How does a need differ from a want?
A need is something necessary for survival, a want is something you would like to have.
What was the worst period of economic decline in the United States known as?
The Great Depression
What statistic on the production schedule must have been declining for the cupcake factory to decide to fire Jimmy?
Marginal product
This term defines a situation in which the satisfaction a consumer gets from purchasing one or more unit of an item starts to decrease.
diminishing marginal utility
A hammer used buy someone who builds houses for a living would be known as a ________
capital good
Name the 5 basic elements of a budget.
1. Income
2. fixed expenses
3. planned expenses
4. variable expenses
5. financed payments
This German philosopher was the founder of communism?
Karl Marx
Expectations
Give THREE examples of products that have an elastic demand, and THREE examples of products that have an inelastic demand
Answers may vary
When you don't have enough resources to produce all the things that people would like to have.
Scarcity