Econ Systems
Supply and Demand sets wages and prices
Free Market System
Money and equipment to run your business
Capital
You get more consumer choice in this system
Free Market
What you have to give up to get something else
Opportunity cost
When the economy is efficient, what does the Prod Poss curve look like?
a point on the curve
Government sets wages and prices
Command
Employees are called this
Labor
No choices in this system
Command
Define scarcity
Outside the Prod Poss curve is ___________
impossible
Institutions to help people but you may also start your own business
Socialism
Raw materials and your business physical location
Land
This system promotes competition
Free Market
What do people spend money on in the circular flow model?
goods and services
Growth looks like the Prod Poss doing what?
expanding or shifting outward
BOTH other names for Free Market
Free Enterprise and Capitalism
The ideas, know-how, and risk-taking to start a business
Entrepreneurial ability
Competition ________ prices
lowers
What do businesses spend money on in the circular flow model?
labor (FOP)
What are Capital Goods?
Most countries have this kind of economy
Mixed
Which FOP would coal, oil, and water be?
Land
Define Incentive
something that motivates or encourages one to do something
Inside the Prod Poss curve, you are operating at what level?
Inefficiently
What's another term for Human Capital?