Definitions
Capital recourses
Things such as buildings, materials, and equipment used to produce goods and services
Traditional Economy
Tradition and custom govern decisions. Found in rural underdeveloped countries.
Natural Resources
Raw Materials from nature to produce goods
Supply
Amount of goods a company (producer) is will to make and sell
Economic Problem
The basic economic problem is scarcity, limited resources and unlimited wants and needs
Command Economy
A system in which a central authority such as the states makes the key economic decisions
Market Economy
System in which economic decisions are made in the marketplace according to the laws of supply and demand
Human resources
The knowledge, efforts and skills people provide
Demand
amount of goods consumers are willing and able to buy
Factors of Production
All components necessary to produce a society's goods/services
Entrepreneurial resources
System in which a central authority such as the state makes the key economic decisions
Command Economy
Things such as buildings, materials and equipment's used to produce goods and services
Equilibrium
Supply and demand are equal
Types of Economic Systems
Traditional, Command, Market, Mixed
Factors of Production
The resources used to produce goods and services
Combination of a market and command economy
Mixed Economy
Entrepreneurial resources
the initiative to improve goods and services or create new ones
If the price is up the quantity is down, if the price is down then the demand is up
The law of demand
Human resources
The knowledge, efforts, and skills people provide
If the price is up the quantity is up, if the price is down the quantity is down
The law of supply