You
Resources are the ____, ______, and _______ needed to make something or provide a service.
money, people, materials
A company owned by many investors (stockholders)
*money is raised to start the business
Corporation
Owned by 2 or a few people. Share risks and profits
Partnership
Owned by one person or family. Responsible for all the risks and decisions, but gets all the profit.
Sole Proprietorship
What are the 3 basic questions of economics?
What will be produced?
Who will produce it?
For whom will it be produced?
What are the four factors of production?
human resources
capital resources
natural resources
entrepreneurship resources
Economic decisions are based on customs & people often perform the same type of work as their relatives
Traditional Economy
Minimal government involvement in the economy. Profit motive. Private ownership of property/resources
Free-Market Economy
Central ownership (usually by the government) of property/resources. Lack of consumer choice
Command Economy
Individuals & businesses are owners and decision makers for the private sector and the gov't in the public sector
Mixed Economy
Scarcity occurs when _____ is higher than _____, and there is not enough of something
demand
supply
Acts as central bank of USA. Maintains value of currency, regulates banks, manages amount of money in circulation
The Federal Reserve
Explain the two parts of a loan are
principal - the initial part of the loan (what you borrow)
interest - the penalty for borrowing money (extra $ paid back)
When supply is higher than demand, and there is more of something than people want
Surplus
What are the different types of money in the US?
coins, currency, checks, debit cards
When one company has control of such a large part of the market for a product or service AND describe the two negative aspects of this economic situation
Monopoly
What is opportunity cost?
What you miss out on (the opportunity) when you have to make a decision.
If supply is greater than demand, you have a SURPLUS, and the price is generally ______. If demand is greater than supply, you have SCARCITY, and the price is generally ____.
low
high
What government agency controls what can be seen and heard on television and radio?
Federal Communications Commission (FCC)
The government pays for public goods and services by borrowing money and
Collecting taxes from people and businesses
How do supply and demand work together to set the price?
Supply and demand shift around until the price consumers are willing to pay meets the price at which producers are willing to sell. This is called the Equilibrium Point.
What is the Federal Communications Commission (FCC), the Federal Drug Safety Administration FDA, the National Highway Traffic Safety Administration (NHZTSA)
Governmental Agencies
The principle of ________________________ states that consumers determine through their purchases what goods and services will be produced.
consumer sovereignty
How does the Federal Reserve Bank slow the economy?
*increase the reserve requirement
*raise the discount rate
*sells government securities
What is consumer sovereignty?
an economy where the consumers have the spending powers to choose what to buy and influence what is being produced